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16 May 2013
Forex Flash: USD/JPY may lack fuel to sustain heavy gains – Westpac
FXstreet.com (Barcelona) - According to Sean Callow, a Global FX Strategist at Westpac, “It may seem heroic soon after the USD/JPY’s 4.5 year highs, but we remain unconvinced that the pair has the fuel to sustain such heady gains.
BoJ policy has not changed since the 4 Apr announcement and we expect Bernanke will at least interrupt the dollar’s bull run. Moreover, while Japan has finally resumed net purchases of foreign bonds, the scale at this stage is minimal. We remain neutral on the week and see significant downside risks multi-week/month.”
The Bank of Japan meets Tuesday-Wednesday, with no new policy moves on the table but interest in the commentary. The last statement was markedly brief as the BoJ had announced their ‘Quantitative and Qualitative Monetary Easing’ program three weeks earlier. The March ‘All Industry Activity Index’ is due Tuesday and March machine orders Fri 17 May.
BoJ policy has not changed since the 4 Apr announcement and we expect Bernanke will at least interrupt the dollar’s bull run. Moreover, while Japan has finally resumed net purchases of foreign bonds, the scale at this stage is minimal. We remain neutral on the week and see significant downside risks multi-week/month.”
The Bank of Japan meets Tuesday-Wednesday, with no new policy moves on the table but interest in the commentary. The last statement was markedly brief as the BoJ had announced their ‘Quantitative and Qualitative Monetary Easing’ program three weeks earlier. The March ‘All Industry Activity Index’ is due Tuesday and March machine orders Fri 17 May.