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BoJ takes new easing steps - Societe Generale

FXStreet (Łódź) - Kit Juckes, Global Head of Currency Strategy at Societe Generale senses some panic in BoJ's decision today to implement a fresh round of easing.

Key Quotes

"The BOJ decided to rush through the next round of QE. If there's a faint whiff of panic to BOJ action, and a sense of despair at the ropes binding Mr Draghi's ECB, then the contrast with the QE-ending Fed is all the starker."

"And for FX markets, it's that contrast which drives the dollar higher. EUR/USD has major support at 1.25 (see tech section) and if (when) this breaks, we're going to get the next leg of the whole dollar move properly underway, for another 5-10%."

"The yen is cheap already but there's no point screaming at the tide like Canute, it's going to weaken further. Our views on GBP/USD are still simple - it's going down."

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