5 Mar 2015
EUR/JPY points north in the medium-term – Rabobank
FXStreet (Edinburgh) - In the view of Jane Foley, Senior FX Strategist at Rabobank, the cross could resume its upside in the medium term.
Key Quotes
“Both the ECB and the BoJ are involved in aggressive monetary policy easing and both the EUR and the JPY has recorded significant falls vs. the USD on a 12 months view”.
“After a period of significant price movement between October 2014 and January 2015, EUR/JPY has settled back into a more stable trading range”.
“The start of the ECB’s QE programme has the potential to bring some additional pressure for the EUR”.
“That said, disappointing January CPI inflation data in Japan increases the risk that the BoJ could increase its monetary policy easing even further this year”.
“BoJ Governor Kuroda has previously promised to “drastically convert the deflationary mindset” and this plan has suffered a setback from both the fall in demand in the wake of last April’s consumption tax hike and on the back of the drop in oil prices”.
“On balance, we expect EUR/JPY to hold fairly steady but expect a modest uptrend in EUR/JPY medium term”.
Key Quotes
“Both the ECB and the BoJ are involved in aggressive monetary policy easing and both the EUR and the JPY has recorded significant falls vs. the USD on a 12 months view”.
“After a period of significant price movement between October 2014 and January 2015, EUR/JPY has settled back into a more stable trading range”.
“The start of the ECB’s QE programme has the potential to bring some additional pressure for the EUR”.
“That said, disappointing January CPI inflation data in Japan increases the risk that the BoJ could increase its monetary policy easing even further this year”.
“BoJ Governor Kuroda has previously promised to “drastically convert the deflationary mindset” and this plan has suffered a setback from both the fall in demand in the wake of last April’s consumption tax hike and on the back of the drop in oil prices”.
“On balance, we expect EUR/JPY to hold fairly steady but expect a modest uptrend in EUR/JPY medium term”.