11 Jul 2014
BoJ unlikely to be overly hawkish - Nomura
FXStreet (Bali) - According to Yujiro Goto, FX Strategist at Nomura, the BOJ is unlikely to be overly hawkish next week (14-15 July), thus unlikely to send USDJPY much lower.
Key Quotes
"The continuous decline in near-term easing expectations has been putting downside pressure on USDJPY, while it will limit downside risks into the next BOJ meetings."
"Core CPI inflation inched down to 1.4% in May, and momentum of exports remains relatively weak. In addition, the BOJ still wants to monitor domestic demand after the tax hike, which has been mixed recently."
"In fact, household expenditure has been weaker than expected so far in Q2, even though we expect the Japanese economy to keep growing beyond the tax hike. May Machinery Orders released today was also disappointing, even though the series have been highly volatile recently."
"As a result, the BOJ is unlikely to be overly hawkish at this point and the BOJ meeting next week (14-15 July) is unlikely to send USDJPY lower."
Key Quotes
"The continuous decline in near-term easing expectations has been putting downside pressure on USDJPY, while it will limit downside risks into the next BOJ meetings."
"Core CPI inflation inched down to 1.4% in May, and momentum of exports remains relatively weak. In addition, the BOJ still wants to monitor domestic demand after the tax hike, which has been mixed recently."
"In fact, household expenditure has been weaker than expected so far in Q2, even though we expect the Japanese economy to keep growing beyond the tax hike. May Machinery Orders released today was also disappointing, even though the series have been highly volatile recently."
"As a result, the BOJ is unlikely to be overly hawkish at this point and the BOJ meeting next week (14-15 July) is unlikely to send USDJPY lower."