5 Mar 2015
USD/JPY neutral outlook for the week ahead – Westpac
FXStreet (Barcelona) - Robert Rennie of Westpac, explains that the macro outlook in US and recent comments from Abe’s advisor suggest that USD/JPY might remain neutral for the week ahead.
Key Quotes
“Event risk: It’s a reasonably busy week next week with balance of payments data plus revised GDP and the economy watchers survey on Monday and then the BSI on Thursday”
“We remain firmly neutral USD/JPY. The negative shift in US data momentum looks like it continues near term, while JGB yields remain towards the upper end of recent ranges.”
“However, global risk sentiment continues to improve and Greece is certainly not seen as the dislocative issue it was mid Feb”
“All this argues for buying USD/JPY on dips to 118.”
“However, the very clear warnings from Abe advisor Honda suggest 120+ remains difficult near term. Hence the neutral bias”
Key Quotes
“Event risk: It’s a reasonably busy week next week with balance of payments data plus revised GDP and the economy watchers survey on Monday and then the BSI on Thursday”
“We remain firmly neutral USD/JPY. The negative shift in US data momentum looks like it continues near term, while JGB yields remain towards the upper end of recent ranges.”
“However, global risk sentiment continues to improve and Greece is certainly not seen as the dislocative issue it was mid Feb”
“All this argues for buying USD/JPY on dips to 118.”
“However, the very clear warnings from Abe advisor Honda suggest 120+ remains difficult near term. Hence the neutral bias”