17 Feb 2014
Flash: More needed from BoJ- BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained BoJ will need to do more.
Key Quotes:
"Japan: The disappointing Q4 GDP figures spurred speculation that maybe the BOJ will have to do more after all. This saw the greenback climb back to the JPY 102 area."
"Growth in Q4 was estimated at 0.3%, less than half of what the Bloomberg consensus forecast. This matched Q3's performance."
"In addition, the GDP deflator fell 0.4% year-over-year, which is twice the pace the consensus had expected. It renews concerns about a flagging economy as April 1 retail sales tax looms."
"Ironically, despite the yen's depreciation, net exports offset in full the rise in private consumption in the last three months of 2013. Business investment rose 1.3% on the quarter, and while this represents some acceleration (0.2% Q3) and is the largest increase since Q4 11, it lagged expectations (~1.8%)."
Key Quotes:
"Japan: The disappointing Q4 GDP figures spurred speculation that maybe the BOJ will have to do more after all. This saw the greenback climb back to the JPY 102 area."
"Growth in Q4 was estimated at 0.3%, less than half of what the Bloomberg consensus forecast. This matched Q3's performance."
"In addition, the GDP deflator fell 0.4% year-over-year, which is twice the pace the consensus had expected. It renews concerns about a flagging economy as April 1 retail sales tax looms."
"Ironically, despite the yen's depreciation, net exports offset in full the rise in private consumption in the last three months of 2013. Business investment rose 1.3% on the quarter, and while this represents some acceleration (0.2% Q3) and is the largest increase since Q4 11, it lagged expectations (~1.8%)."