Goldman Sachs on USD/JPY and the Bank of Japan. Analysts have lowered their USD/JPY forecasts significantly:
- “We have maintained our core view that USD/JPY should trade most closely with US rates this year, particularly given our forecast that the BoJ will be more patient in making further policy changes than the market expects,” GS notes.
- But with the upcoming BoJ meeting—which will reportedly include upward revisions to the Bank’s inflation forecast—and the forthcoming announcement of a new BoJ governor (possibly one with more hawkish policy views and could be named as early as next month) likely encouraging the market to press even higher odds of a policy shift in Japan, we are revising down our USD/JPY forecast path to 136, 136 and 126 in 3, 6 and 12 months (vs. 142, 145 and 130 previously),” GS adds.
This
is via the folks at eFX.
For
bank trade ideas, check
out eFX Plus.
For a limited time, get a 7 day free trial, basic for $79 per month
and premium at $109 per month. Get
it here.
We’ll get inflation indicators from Japan today:
USD/JPY update: