28 Oct 2015
Neutral stance in USD/JPY near term – Westpac
FXStreet (Edinburgh) - In the view of strategists at Westpac, the USD/JPY stance in the near term remains in the neutral camp.
Key Quotes
“The level of focus on the BoJ meeting this week increased materially last Thursday when Draghi addressed press. It increased further on Friday afternoon when the PBoC cut rates and RRR”.
“We remain of the view that it is unlikely we will see any significant policy developments on Friday”.
“However, the statement and press conference will be closely watched for signals including whether the BoJ downgrades CPI and GDP forecasts. With the FOMC set to leave rates unchanged, 121.50/122 looks toppy for us. So we stick with a neutral bias for another week”.
Key Quotes
“The level of focus on the BoJ meeting this week increased materially last Thursday when Draghi addressed press. It increased further on Friday afternoon when the PBoC cut rates and RRR”.
“We remain of the view that it is unlikely we will see any significant policy developments on Friday”.
“However, the statement and press conference will be closely watched for signals including whether the BoJ downgrades CPI and GDP forecasts. With the FOMC set to leave rates unchanged, 121.50/122 looks toppy for us. So we stick with a neutral bias for another week”.