15 Dec 2015
JPY: Firm Tankan likely to favour Yen - RBS
FXStreet (Delhi) – Mansoor Mohi-Uddin, Senior Market Strategist at RBS, notes that the Q4’15 Tankan shows Japanese corporate sentiment holding up despite strong slowdown in emerging economies.
Key Quotes
• “Large manufacturers’ index unchanged at solid +12, large non-manufacturers’ also unchanged at +25, the high since 1991.
• The outlooks were less encouraging with large manufacturers’ falling to +7 and large non-manufacturers’ dipping to +23.
• But Tankan shows sentiment sufficiently resilient to keep BoJ on hold until at least after spring’s wage round.
• Last month Governor Kuroda flagged a fall in business investment as one of two risks that would induce more BoJ easing.
• Dollar-yen to stay capped at 120-125 as Fed hikes while BoJ refrains from fresh stimulus. Yen to keep gaining on crosses.”
Key Quotes
• “Large manufacturers’ index unchanged at solid +12, large non-manufacturers’ also unchanged at +25, the high since 1991.
• The outlooks were less encouraging with large manufacturers’ falling to +7 and large non-manufacturers’ dipping to +23.
• But Tankan shows sentiment sufficiently resilient to keep BoJ on hold until at least after spring’s wage round.
• Last month Governor Kuroda flagged a fall in business investment as one of two risks that would induce more BoJ easing.
• Dollar-yen to stay capped at 120-125 as Fed hikes while BoJ refrains from fresh stimulus. Yen to keep gaining on crosses.”
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