Back
27 Aug 2015
USD/JPY: to remain subdued on market uncertainty - BTMU
FXStreet (Guatemala) - Analysts at Bank of Tokyo Mitsubishi UFJ noted that the USD/JPY fell sharply this week, at one point touching 116.15, the low since January. USD/JPY is now back above 120.00 as market panic eases and US yields rise.
Key Quotes:
"The drops in the Nikkei and USD/JPY have been undoubtedly disastrous. Market reactions over the past few trading days reflected clear risk-averse sentiment. In the upcoming weekend, Vice-Chair Stanley Fisher at Jackson Hole may try and help calm market fears through stressing caution on monetary policy."
"Next week, ahead of non-farm payroll report release, many of the economic data may show the positive recovery momentum in the U.S. Still, these data may still not ease market tension. Tomorrow, Japan’s CPI ex. food and energy may illustrate the positive price recovery."
"Retail sales may also clarify the positive momentum in households, though private consumption was negative in Q2 GDP data. On 1 st September, capital spending data may indicate recovery in capital expenditure. That would imply an upward revision of Q2 GDP data. Such a scenario would help support stocks and USD/JPY. However, ahead of the September FOMC, market uncertainty may well remain high which would limit any rise in USD/JPY."
Key Quotes:
"The drops in the Nikkei and USD/JPY have been undoubtedly disastrous. Market reactions over the past few trading days reflected clear risk-averse sentiment. In the upcoming weekend, Vice-Chair Stanley Fisher at Jackson Hole may try and help calm market fears through stressing caution on monetary policy."
"Next week, ahead of non-farm payroll report release, many of the economic data may show the positive recovery momentum in the U.S. Still, these data may still not ease market tension. Tomorrow, Japan’s CPI ex. food and energy may illustrate the positive price recovery."
"Retail sales may also clarify the positive momentum in households, though private consumption was negative in Q2 GDP data. On 1 st September, capital spending data may indicate recovery in capital expenditure. That would imply an upward revision of Q2 GDP data. Such a scenario would help support stocks and USD/JPY. However, ahead of the September FOMC, market uncertainty may well remain high which would limit any rise in USD/JPY."