8 Apr 2014
More easing to come by BoJ, but not today - Westpac
FXStreet (Bali) - According to the Westpac FX Team, it would be very surprising if the BoJ takes action today.
Key Quotes
"To be sure, recent data has been very disappointing and there is little doubt in our mind that more policy will be required. However, this week is not the time. More ‘live’ is the April 30 ‘outlook’ meeting which will coincide with the usual month end data. Even that is probably too early. So for now the BoJ offers only background support for USD/JPY and yen crosses."
"The reaction to US Mar NFP was also a setback. But the new financial year could see an upswing in outflows to foreign bonds as QQME continues unabated and US yields should eventually break out to the topside as Q1 weakness fades. Techs remain bullish, targeting 105/106 so long as 102.90/103.10 support holds."
Key Quotes
"To be sure, recent data has been very disappointing and there is little doubt in our mind that more policy will be required. However, this week is not the time. More ‘live’ is the April 30 ‘outlook’ meeting which will coincide with the usual month end data. Even that is probably too early. So for now the BoJ offers only background support for USD/JPY and yen crosses."
"The reaction to US Mar NFP was also a setback. But the new financial year could see an upswing in outflows to foreign bonds as QQME continues unabated and US yields should eventually break out to the topside as Q1 weakness fades. Techs remain bullish, targeting 105/106 so long as 102.90/103.10 support holds."