Charu Chanana, strategist at Saxo Capital Markets, said the Bank of Japan has once again proven that it can be more dovish than the most dovish expectations on Wall Street.
The market may strengthen arbitrage beliefs and continue to test the limit of the yen\’s depreciation.
The US dollar against the yen may accelerate towards the 158-160 range. The intervention threshold of 10 yen rise or fall within one month proposed by Masato Kanda gives further upside space.
The U.S. personal consumption expenditures (PCE) inflation gauge is back on the radar. We\’re back to waiting for intervention to stop the yen\’s plunge.
Without coordination and without the support of hawkish policy signals, any intervention will be in vain.
Saxo: Yen intervention will be in vain without hawkish signals from the Bank of Japan
Charu Chanana, strategist at Saxo Capital Markets, said the Bank of Japan has once again proven that it can be more dovish than the most dovish expectations on Wall Street.
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