JPY: BoJ’s hesitancy in policy easing contributing to firmer yen
By FXStreet FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, suggests that the BoJ provided no clear signal yesterday that further easing is imminent which is helping the yen to trade on a firmer footing in the near-term.
Key Quotes
“The yen has strengthened modestly in the Asian trading session supported by more risk-averse trading conditions as the rebound this week in global equities has lost some momentum overnight.”
“Further evidence of disappointing growth in Japan was evident overnight in the releases of the latest machinery orders report and Economy Watchers survey.”
“Building evidence of disappointing economic growth in Japan will continue to increase pressure on the BoJ to deliver further monetary easing. It also leaves the yen more vulnerable should the BoJ surprise the market and ease policy further at the end of the month which could trigger a larger negative impact on the yen than otherwise.”
“Still more risk-averse trading conditions in the near-term, the already significant scale of yen weakness, and the improvement in Japan’s external balance are likely to help dampen further yen weakness should the BoJ ease policy again.”
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Source:: FX Street
