FXStreet (Delhi) – Derek Halpenny, European Head of GMR at MUFG, suggests that after investors this week were initially concerned over central bank indifference to financial market turmoil (Fed rhetoric so far this year, Bank of Canada policy announcement, Governor Kuroda comments in the Diet), the pendulum has swung the other way. Key Quotes “Obviously President Draghi is the number one factor but we note also with interest the Nikkei article titled ‘BOJ mulls additional easing amid economic uncertainty’ - a senior BOJ official is quoted as stating that if inflation expectations are falling then the BOJ "should consider additional easing". That certainly isn’t entirely consistent with Kuroda’s comments in the Diet where he appeared to play down developments abroad by stating that the economic recovery and rising inflation were on track. We are increasingly sceptical of that view and although we do not see the BOJ acting next week, the BOJ may well be forced into acting if financial market conditions remain unfavourable. Unlike the ECB though, the BOJ’s scope for easing is very limited and that certainly leaves the yen as the favoured safe-haven currency if financial market turmoil persists.” For more information, read our latest forex news.