30 Apr 2015
Remaining long CAD/JPY – TDS
FXStreet (Barcelona) - Expecting BoJ to add further stimulus this year, FX Strategists at TD Securities prefer maintaining a bullish view on CAD/JPY.
Key Quotes
“As for the BoJ they left policy unchanged but cut its inflation forecast for core CPI to 0.8% y/y (previously 1.0% from the January projection) and slightly lower its GDP estimate to 2.0% for FY2015. Cuts were also made to FY2016 and the overall risks to the outlook were judged to be tilted to the downside.”
“There was one dissenter in the meeting who favoured tapering the Bank's 80 trillion yen program. But, with the Bank slashing its forecasts and negative risks to the outlook, it seems more likely that the BoJ will add stimulus this year – perhaps sooner rather than later. We remain long CADJPY.”
Key Quotes
“As for the BoJ they left policy unchanged but cut its inflation forecast for core CPI to 0.8% y/y (previously 1.0% from the January projection) and slightly lower its GDP estimate to 2.0% for FY2015. Cuts were also made to FY2016 and the overall risks to the outlook were judged to be tilted to the downside.”
“There was one dissenter in the meeting who favoured tapering the Bank's 80 trillion yen program. But, with the Bank slashing its forecasts and negative risks to the outlook, it seems more likely that the BoJ will add stimulus this year – perhaps sooner rather than later. We remain long CADJPY.”