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20 Aug 2013
Flash: USD/JPY 3-month forecast at 105.00 – UBS
FXstreet.com (New York) - Is the current pace of BoJ buying sufficient to support the JGB market in the face of an even more aggressive UST selloff? – We believe so, suggests Research Analyst Gareth Berry at UBS.
Key quotes
It has now been over four months since BoJ Governor Kuroda unveiled his
QQE policy on April 4th, and enough time has passed to allow a meaningful comparison between the pace of JGB issuance by the Ministry of Finance and the pace of JGB purchases by the BoJ.
“That's a recipe for ongoing suppression of JGB yields, and suggests there is plenty USD/JPY still to come. Our 3-month USD/JPY forecast stands at
105.”
Key quotes
It has now been over four months since BoJ Governor Kuroda unveiled his
QQE policy on April 4th, and enough time has passed to allow a meaningful comparison between the pace of JGB issuance by the Ministry of Finance and the pace of JGB purchases by the BoJ.
“That's a recipe for ongoing suppression of JGB yields, and suggests there is plenty USD/JPY still to come. Our 3-month USD/JPY forecast stands at
105.”