- 04 Jun '23 at 7:35 pm #59827TradersComKeymaster
Japan’s ‘line in the sand’ hasn’t changed much from last year, high probability of yen-supportive intervention if USDJPY around 145
Japanese economy in stronger position than it was last year, benefiting from #yen weakness through exports via BNP Paribas
The Bank of Japan (BoJ) may act before the Ministry of Finance (MoF) to address the weakening yen, BNP Paribas analysts have predicted.
The Japanese economy is in a stronger position than it was last year, benefiting from yen weakness through goods and services exports.
However, high inflation and potential early elections could motivate the Prime Minister to prevent the yen from weakening too much and drawing attention to the rising cost of living.
BNP Paribas analysts believe that the government’s ‘line in the sand’ hasn’t changed much from last year and see a high probability of yen-supportive intervention if the USDJPY surges to around 145. Nonetheless, they speculate that verbal push back from the MoF may only slow the pace of JPY weakness and is unlikely to trigger a sustained strengthening in the currency.10 Jun '23 at 11:30 am #59746KnovaWaveParticipant
The U.S. dollar rally took another breather this week, in a tight range for the US dollar index of 103.290-104.400, down -0.49% for the week. The doll
[See the full post at: Forex Traders Weekly Outlook – Surprise RBA and BOC Rate Hikes Lead to USD Selling]
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