29 Mar 2016
Return to USD/JPY 120 is still perfectly possible - SocGen
Kit Juckes, Research Analyst at Societe Generale, notes that the dollar has been soft in March, but it’s the yen that has been the weakest of the major currencies.
Key Quotes
“It’s not a dramatic move and its’ had enough twists and turns to thwart me, but it continues to normalise after the rally in January. This morning’ February data saw the unemployment rate edge up to 3.3% from 3.2%.
Both tomorrow’s industrial production and Friday’s Tankan are likely to be soft. Pressure for fiscal easing will build but I can’t see anything that is going to make me bullish for the yen and a return to USD/JPY 120 is still perfectly possible, even if happens at snail’s pace.”
Key Quotes
“It’s not a dramatic move and its’ had enough twists and turns to thwart me, but it continues to normalise after the rally in January. This morning’ February data saw the unemployment rate edge up to 3.3% from 3.2%.
Both tomorrow’s industrial production and Friday’s Tankan are likely to be soft. Pressure for fiscal easing will build but I can’t see anything that is going to make me bullish for the yen and a return to USD/JPY 120 is still perfectly possible, even if happens at snail’s pace.”