6 Aug 2015
USD/JPY to try 130.00 even without further BoJ easing - Deutsche Bank
FXStreet (Bali) - Taisuke Tanaka, Tokyo-based chief FX strategist at Deutsche Bank, notes that even without further BoJ easing in the near future, USD/JPY will try ¥130 into 2016 as the Fed gets closer to a rate hike.
Key Quotes
"We do not believe the BoJ will surprise the markets with another easing at its monetary policy meeting today and tomorrow. Moreover, we see little chance of any additional easing action by the bank for the foreseeable future. Even so, we believe the USD/JPY will try ¥130 into 2016 as the strength of the US
economy spurs the Fed ever closer to a rate hike."
"We believe the BoJ is unlikely to reach its 2% CPI growth target. Our economists see that the core CPI will rise gradually toward 1% YoY through next year. The rate may briefly exceed 1% on the effects of both JPY weakness and waning impact from plunge in oil prices. We suspect the BoJ will maintain a waitandsee stance on the grounds that inflation is slowly but surely edging higher."
"BoJ policy is already sufficiently bearish for the JPY just with the continuation of the present QQE. JPY bears would not need to have concerns on the absence of further easing."
Key Quotes
"We do not believe the BoJ will surprise the markets with another easing at its monetary policy meeting today and tomorrow. Moreover, we see little chance of any additional easing action by the bank for the foreseeable future. Even so, we believe the USD/JPY will try ¥130 into 2016 as the strength of the US
economy spurs the Fed ever closer to a rate hike."
"We believe the BoJ is unlikely to reach its 2% CPI growth target. Our economists see that the core CPI will rise gradually toward 1% YoY through next year. The rate may briefly exceed 1% on the effects of both JPY weakness and waning impact from plunge in oil prices. We suspect the BoJ will maintain a waitandsee stance on the grounds that inflation is slowly but surely edging higher."
"BoJ policy is already sufficiently bearish for the JPY just with the continuation of the present QQE. JPY bears would not need to have concerns on the absence of further easing."