29 Apr 2014
Yen to weaken this week - HSBC
FXStreet (Bali) - Daragh Maher, Strategist at HSBC, shared his outlook on the FX market for this week, noting that the Yen is likely to extend recent losses.
Key Quotes
"We expect the JPY to weaken on softer Japanese production data as the market worries that BoJ inaction this Wednesday may not be sustainable. GBP would piggy-back any EUR rally against the USD, and may enjoy support from M&A news. However, lofty levels make it hard for GBP to rally aggressively with so much already in the price."
"The rally in AUD-NZD looks at odds with relative rate expectations and we expect the gap to close via a lower cross, and retain our target of 1.0550. By contrast, we expect NOK-SEK to resume its uptrend as the market focuses on the divergent inflation picture. We retain our open recommendation to buy USD-CAD given BoC dovishness, though we will need to wait for more significant Canadian data to energise this exchange rate afresh."
Key Quotes
"We expect the JPY to weaken on softer Japanese production data as the market worries that BoJ inaction this Wednesday may not be sustainable. GBP would piggy-back any EUR rally against the USD, and may enjoy support from M&A news. However, lofty levels make it hard for GBP to rally aggressively with so much already in the price."
"The rally in AUD-NZD looks at odds with relative rate expectations and we expect the gap to close via a lower cross, and retain our target of 1.0550. By contrast, we expect NOK-SEK to resume its uptrend as the market focuses on the divergent inflation picture. We retain our open recommendation to buy USD-CAD given BoC dovishness, though we will need to wait for more significant Canadian data to energise this exchange rate afresh."