7 Apr 2015
JPY likely to ignore BoJ policy announcement – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities expect BoJ to maintain its policy steady, further expecting USD/JPY to remain range-bound.
Key Quotes
“BoJ meetings this month (there are two) should see policy settings remain on hold. There is zero expectation of any action this week, though actual risks may be non-zero, and only a small minority calling for an expansion of monetary stimulus at the April 30th meeting.”
“Broadly, risks appear to be skewed towards more stimulus at some point but we are unsure about the timing.”
“Economic growth wavered in 2014 as domestic demand was restrained by the consumption tax and early signs point to an economy that will stumble into 2015. Underlying inflation pressures are very concerning.”
“Better growth is expected later this year, however, and well-supported inflation expectations buy the BoJ some time before adding more stimulus.”
“With little expectation of any stimulus announcement this week, the JPY is likely to ignore the policy meeting, helping keep USDJPY in a range.”
Key Quotes
“BoJ meetings this month (there are two) should see policy settings remain on hold. There is zero expectation of any action this week, though actual risks may be non-zero, and only a small minority calling for an expansion of monetary stimulus at the April 30th meeting.”
“Broadly, risks appear to be skewed towards more stimulus at some point but we are unsure about the timing.”
“Economic growth wavered in 2014 as domestic demand was restrained by the consumption tax and early signs point to an economy that will stumble into 2015. Underlying inflation pressures are very concerning.”
“Better growth is expected later this year, however, and well-supported inflation expectations buy the BoJ some time before adding more stimulus.”
“With little expectation of any stimulus announcement this week, the JPY is likely to ignore the policy meeting, helping keep USDJPY in a range.”