25 Jul 2013
Flash: USD/JPY could see rally extend – UBS
FXstreet.com (New York) - The ink is not yet dry on Sunday’s election result, but Japan’s government is already preparing to capitalize on the outcome, notes Research Analyst Gareth Berry.
Key quotes
“The latest comments suggest fiscal policy could be deployed to sustain the fledgling recovery. Having secured control of both parliamentary chambers, this is now a realistic possibility.”
“Fiscal stimulus should be good for Japanese equities, and what’s good for equities is likely to support the USD/JPY if existing correlations hold.”
“The 9-month old USD/JPY rally has been built largely on the promise (and delivery) of aggressive monetary easing. Implementing a new fiscal dimension now could see the rally extend.”
Key quotes
“The latest comments suggest fiscal policy could be deployed to sustain the fledgling recovery. Having secured control of both parliamentary chambers, this is now a realistic possibility.”
“Fiscal stimulus should be good for Japanese equities, and what’s good for equities is likely to support the USD/JPY if existing correlations hold.”
“The 9-month old USD/JPY rally has been built largely on the promise (and delivery) of aggressive monetary easing. Implementing a new fiscal dimension now could see the rally extend.”