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25 Apr 2016
Kuroda needs to do more to see yen fall further - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair jumped over 200 pips following BOJ's announcement that policy makers have been discussing negative-rate loans for financial institutions together with another rate cut, closing the week at 111.61, a few pips below the high set at 111.80.
Key Quotes:
"Separately, the Japanese economy continues to struggle to sustain growth, as the Japan’s manufacturing PMI printed 48.0 in April, missing an estimate of 49.5 and was below the previous read of 49.1.
At this point, some kind of action has already been priced in, which means Kuroda will need to launch a huge bazooka next Thursday, to actually keep the JPY falling. Nevertheless, the ability of the Central Bank to influence price action is expected to be limited and short-lived. "
Key Quotes:
"Separately, the Japanese economy continues to struggle to sustain growth, as the Japan’s manufacturing PMI printed 48.0 in April, missing an estimate of 49.5 and was below the previous read of 49.1.
At this point, some kind of action has already been priced in, which means Kuroda will need to launch a huge bazooka next Thursday, to actually keep the JPY falling. Nevertheless, the ability of the Central Bank to influence price action is expected to be limited and short-lived. "