24 Jul 2015
USD/JPY upside might be limited – BTMU
FXStreet (Edinburgh) - Derek Halpenny, European Head of GMR at BTMU, signalled that further gains in the pair could be limited.
Key Quotes
“Japanese investors have been buyers of foreign equities in every week of 2015 so far, underlining the extraordinary demand for foreign equities, which in no doubt is partly explained by the GPIF and other government related funds shifting into riskier assets”.
“That outflow is helping to keep USD/JPY stable rather than drive it higher with increased flows in favour of the yen apparent from the increasing size of Japan’s current account surplus”.
“The investment income is a key element of Japan’s current account surplus. Japan’s overall current account balance is currently undergoing a remarkable transformation”.
“In the first five months of last year, the current account was in deficit totalling JPY 134bn”.
“For the first five months of 2015 that has become a surplus totalling JPY 7,625bn. That’s a transformation that shouldn’t be ignored and explains our cautious USD/JPY forecasts showing only limited upside going forward”.
Key Quotes
“Japanese investors have been buyers of foreign equities in every week of 2015 so far, underlining the extraordinary demand for foreign equities, which in no doubt is partly explained by the GPIF and other government related funds shifting into riskier assets”.
“That outflow is helping to keep USD/JPY stable rather than drive it higher with increased flows in favour of the yen apparent from the increasing size of Japan’s current account surplus”.
“The investment income is a key element of Japan’s current account surplus. Japan’s overall current account balance is currently undergoing a remarkable transformation”.
“In the first five months of last year, the current account was in deficit totalling JPY 134bn”.
“For the first five months of 2015 that has become a surplus totalling JPY 7,625bn. That’s a transformation that shouldn’t be ignored and explains our cautious USD/JPY forecasts showing only limited upside going forward”.