4 Mar 2015
USD/JPY: upside risk building – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that USD/JPY is seeing building upside risks as risk aversion eases in the market.
Key Quotes
“USDJPY is steady into the NA open, but see building upside risk, particularly as risk aversion has eased while the fundamental picture has failed to improve, leaving the BoJ likely unable to meet its 2% inflation goal and at risk of a sudden policy announcement.”
“Today, Governor Kuroda reminded markets that the BoJ can make adjustments without hesitation; however he also sounded somewhat vague on the timing of reaching its goal.”
“Services PMI dropped back below 50, dragging the composite down to 50; there is no data left this week, leaving the market focused on the USD side of the equation.”
Key Quotes
“USDJPY is steady into the NA open, but see building upside risk, particularly as risk aversion has eased while the fundamental picture has failed to improve, leaving the BoJ likely unable to meet its 2% inflation goal and at risk of a sudden policy announcement.”
“Today, Governor Kuroda reminded markets that the BoJ can make adjustments without hesitation; however he also sounded somewhat vague on the timing of reaching its goal.”
“Services PMI dropped back below 50, dragging the composite down to 50; there is no data left this week, leaving the market focused on the USD side of the equation.”