26 Mar 2014
Further easing by the BoJ sooner rather than later - BTMU
FXStreet (Barcelona) -Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, believes further BoJ easing should be starting soon.
Key Quotes
"The major currency pairs remain broadly stable in the foreign exchange market this morning despite rising speculation of additional monetary easing by key central banks. An economic advisor to PM Abe – Etsuro Honda – suggested today that the now widely expected monetary easing from the BOJ may come sooner than expected, by mid-May, if the BOJ deems the implementation of the sales tax as damaging for price stability going forward."
"Governor Kuroda did repeat last week that the BOJ would do whatever they can to ensure price stability and it is very likely that pressure is set to mount for further action to be taken as the economy deteriorates after the sales tax is implemented next week. The lack of action in USD/JPY is an indication that further easing is widely expected now in the market with only the timing unclear. We think May is probably too soon and end Q2 or into Q3 remains more likely."
Key Quotes
"The major currency pairs remain broadly stable in the foreign exchange market this morning despite rising speculation of additional monetary easing by key central banks. An economic advisor to PM Abe – Etsuro Honda – suggested today that the now widely expected monetary easing from the BOJ may come sooner than expected, by mid-May, if the BOJ deems the implementation of the sales tax as damaging for price stability going forward."
"Governor Kuroda did repeat last week that the BOJ would do whatever they can to ensure price stability and it is very likely that pressure is set to mount for further action to be taken as the economy deteriorates after the sales tax is implemented next week. The lack of action in USD/JPY is an indication that further easing is widely expected now in the market with only the timing unclear. We think May is probably too soon and end Q2 or into Q3 remains more likely."