Central Banks dominate USD/JPY - Scotiabank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Analysts at Scotiabank explained that JPY’s performance through this period of renewed risk appetite is notable, given its failure to weaken in what would be an anticipated reversal of the haven-driven gains resulting from last week’s turmoil.

    Key Quotes:

    "Relative central bank policy is likely playing a dominant role, as we consider Wednesday’s Fed minutes and their confirmation of a moderation in the Fed’s hawkish bias amid a tightening in financial conditions."

    "Local media comments also underscore a moderation in official pressure for further BoJ stimulus at the upcoming meeting on March 15th. Lastly, BoJ policymaker Ishida (a dissenter to the most recent policy decision introducing a negative interest rate) reaffirmed his expectations for the achievement of 2% inflation as he underscored the importance of market sentiment in influencing the near-term effectiveness of negative interest rates."
    For more information, read our latest forex news.

Share This Page

free forex signals