FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained, in respect of USD/JPY, that while the recent upturn in financial market expectations of monetary action by the FOMC on 16th December has helped lift USD/JPY, continued fragile financial market investor sentiment has kept upside moves in check.
Key Quotes:
“The US retail sales data tomorrow will be important in helping shape market expectations although we doubt at this stage even a weak figure would change market thinking dramatically. Hence, downside risks for USD/JPY from weak US data appear limited for now.”
“The Japan GDP report released 16th November might also be important but a mild contraction in GDP of -0.1% QoQ appears priced in the market and is hence unlikely to fuel yen volatility. The BoJ will likely leave present monetary stance intact.”
“The September machinery orders data this week were better than the market consensus; reassuring for the BOJ at it refrains from further monetary stimulus. There are no obvious drivers for USD/JPY in the week ahead – hence the neutral bias.”
(Market News Provided by FXstreet)