21 Jan 2014
Flash: BoJ to turn dovish? - Scotiabank
Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes that the BoJ is expected to come with no changes at next meeting.
Key Quotes:
"JPY is up 0.1% but trading within its recent range. It is quiet entering the week with this week’s BoJ meeting expecting to contain no changes or surprises. Governor Kurodas likely to maintain his recent tone."
"We expect that as the increased sales tax is implemented the BOJ will turn increasingly dovish in order to reach its 2% inflation goal. However, in the near term the focus will remain outside of Japan. We hold a Q114 target of 102 and a year‐end target of 109. C.S.
Key Quotes:
"JPY is up 0.1% but trading within its recent range. It is quiet entering the week with this week’s BoJ meeting expecting to contain no changes or surprises. Governor Kurodas likely to maintain his recent tone."
"We expect that as the increased sales tax is implemented the BOJ will turn increasingly dovish in order to reach its 2% inflation goal. However, in the near term the focus will remain outside of Japan. We hold a Q114 target of 102 and a year‐end target of 109. C.S.