24 Jun 2013
Flash: Japan, business as usual – TD Securities
FXstreet.com (London) - Richard Kelly, Head of European Research for TD Securities said that Japan provided the one source of weekend news that still seemed to be business as usual.
He noted that the ruling LDP-Komeito alliance won a large victory in municipal elections, taking 60% of the seats, with government sources over the weekend also suggesting that while the planned tax hikes in 2014 are likely to go ahead, they will also likely be coupled with some increased spending to soothe the pain. This supported Asia to take USD/JPY up to 98.70, he said, but the negative equity sentiment through London overwhelmed and we are once again trading at 97.00 territory.
He noted that the ruling LDP-Komeito alliance won a large victory in municipal elections, taking 60% of the seats, with government sources over the weekend also suggesting that while the planned tax hikes in 2014 are likely to go ahead, they will also likely be coupled with some increased spending to soothe the pain. This supported Asia to take USD/JPY up to 98.70, he said, but the negative equity sentiment through London overwhelmed and we are once again trading at 97.00 territory.