OctaFX | OctaFX Forex Broker
Open trading account
Back

USDJPY upside a key way to play USD strength - BNPP

FXStreet (Bali) - BNP Paribas continues to endorse its long call on USD/JPY, noting that the current BoJ stance, without further easing, already satisfies their case for a steadily rising profile in USDJPY towards their end-15 and end-16 forecasts of 124 and 134 respectively.

Key Quotes

"Domestic Japanese investors bought net JPY 883bn of foreign bonds and net JPY 173bn of foreign stocks during the week ending 30 October."

"This is very consistent with BoJ policy - which anchors nominal yields and boosts inflation expectations - that depresses JPY real yields and encourages Japanese investors to search for yield abroad."

"Going forward we expect these outflows to continue and drive gradual but sustained JPY weakness."

"Key point here is that existing BoJ policy is already consistent with a steadily rising profile in USDJPY - the BoJ do not need to ease further for our end-15 and end-16 forecasts of 124 and 134 respectively to be hit."

The BoE opts for a downward revision of inflation; maintains economy in healthy state

Super Thursday’s outcome was very much in tune with market expectations. The Bank of England, as expected, left the rate unchanged. Again, as expected, only MCCafferty voted in favour of raising rates from a record-low of 0.5 per cent. The vote to hold rates was thus 8-1.
Read more Previous

Czech Republic Industrial Production (YoY) fell from previous 6.3% to 0.6% in September

Czech Republic Industrial Production (YoY) fell from previous 6.3% to 0.6% in September
Read more Next
Start livechat