Yen is currently trading above 119 against the dollar trapped within its range of 118 & 120; the larger range remains 116-121.
- Bank of Japan today released its monetary policy minutes earlier today, it failed to impress upon any major movement.
- Yen remained trapped between exceptional monetary easing policy from BOJ & safe haven flows due to political uncertainty in the Euro zone.
- GDP data released last week showed Japan is technically out of Recession and growing at 0.6% mom.
- So far the easing has failed to impact substantially aftermath of the sales tax hike by Prime Minister Abe.
Current week -
- The range is expected to continue and yen to benefit from any uncertainty.
- Small business confidence on Tuesday, household, National CPI, Industrial production data on Friday will be of high importance to assess the impact of weak yen and expansionary monetary policy.
- Market is expecting another round of easing by mid this year but vote for last increase was 5-4.
Divergent monetary policy will keep the yen elevated against the dollar only capped by occasional risk aversion.
Posting Komentar