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14 Jan 2015
Credit Suisse: Long USD/JPY on risk of earlier BoJ easing - eFXnews
FXStreet (Barcelona) - The eFXnews Team notes that Credit Suisse CS advises in favor of buying into the risk of another BoJ policy ease in the next two months, further anticipating USD/JPY to test above 124.00 levels.
Key Quotes
“"Given that the key elements of the 2014 wage round were well understood by mid-March last year, similar timing this year would suggest the BoJ may need to move ahead of mid-March 2015 to guarantee a satisfactory outcome," CS argues.”
“"While the Credit Suisse house view is that more easing measures will be announced at the April 8 BoJ meeting, sooner than markets expect, an easing before then cannot be excluded based on recent comments by BoJ Governor Kuroda. We delve into those further in the rest of this section. Were this to happen, USDJPY would likely test June 2007 highs above the 124.00 level," CS projects.”
“In line with this view, CS advises in favor of buying into the risk of another BoJ policy ease in the next two months.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“"Given that the key elements of the 2014 wage round were well understood by mid-March last year, similar timing this year would suggest the BoJ may need to move ahead of mid-March 2015 to guarantee a satisfactory outcome," CS argues.”
“"While the Credit Suisse house view is that more easing measures will be announced at the April 8 BoJ meeting, sooner than markets expect, an easing before then cannot be excluded based on recent comments by BoJ Governor Kuroda. We delve into those further in the rest of this section. Were this to happen, USDJPY would likely test June 2007 highs above the 124.00 level," CS projects.”
“In line with this view, CS advises in favor of buying into the risk of another BoJ policy ease in the next two months.”
This content has been provided under specific arrangement with eFXnews.