6 Apr 2015
EUR/JPY expected to inch higher – Rabobank
FXStreet (Edinburgh) - Senior FX Strategist Jane Foley at Rabobank sees scope for the cross to trend higher in the upcoming periods.
Key Quotes
“A slew of better than expected eurozone economic data releases have encouraged speculation that the ECB’s QE plan may be more successful than had been considered likely”.
“In contrast, while the BoJ continues with its massive asset buying programme, the Japanese economy appears to be struggling to step away from the mantle of slow growth and deflationary risk”.
“Consequently we expect that the BoJ will have to announce further stimulus during the course of the year”.
“While we expect both the JPY and the EUR to underperform the USD this year, on balance we expect more downside pressure on the yen in the coming months and see scope for a modest upside bias in EUR/JPY to emerge”.
Key Quotes
“A slew of better than expected eurozone economic data releases have encouraged speculation that the ECB’s QE plan may be more successful than had been considered likely”.
“In contrast, while the BoJ continues with its massive asset buying programme, the Japanese economy appears to be struggling to step away from the mantle of slow growth and deflationary risk”.
“Consequently we expect that the BoJ will have to announce further stimulus during the course of the year”.
“While we expect both the JPY and the EUR to underperform the USD this year, on balance we expect more downside pressure on the yen in the coming months and see scope for a modest upside bias in EUR/JPY to emerge”.