22 Aug 2013
Flash: JPY direction coming weeks – BMO
FXstreet.com (Barcelona) - Stephen Gallo, Head of European FX Strategy at BMO eyes JPY vs tapering.
Key Quotes:
“The coming few weeks will, we think, be very important for setting the directional trend for the JPY for the balance of the year”.
“As the Fed tapers is asset purchases, “dovish” rhetoric from the BoJ which aligns itself with any downside misses in CPI and growth data will find that it has a nice window to force the JPY to weaken through”.
“All things being equal, the line of JPY weakness should be a bit less encumbered as the Fed sets itself up wind down its asset purchases by next summer”.
Key Quotes:
“The coming few weeks will, we think, be very important for setting the directional trend for the JPY for the balance of the year”.
“As the Fed tapers is asset purchases, “dovish” rhetoric from the BoJ which aligns itself with any downside misses in CPI and growth data will find that it has a nice window to force the JPY to weaken through”.
“All things being equal, the line of JPY weakness should be a bit less encumbered as the Fed sets itself up wind down its asset purchases by next summer”.