JPY: Abe may choose G7 meeting to unveil his fiscal initiatives - BBH

Research Team at BBH, notes that the G7 meeting started today in Japan with Friday typically involves informal discussions that take place around a dinner.

Key Quotes

“The formal policy discussions should start off Saturday morning, ending with the release of the official communique as well as a press conference by host Japan as well as press conferences by the assorted members. With dollar/yen back around 110, the FX aspects of the meeting are likely to be muted.

Facing criticism of over-reliance on monetary policy, Abe may choose this weekend’s G7 meeting to unveil his fiscal initiatives. The G7 will likely issue its traditional boilerplate statement, reaffirming market-driven exchange rates. As hosts, Japan will likely insist on retaining the recognition that excessive volatility needs to be avoided. There is also likely to be a call on those with the ability to boost domestic demand.”