FXStreet (Guatemala) – Analysts at Commerzbank explained that hardly anyone will be better placed to understand Riksbank’s concerns than the Bank of Japan (BoJ).
Key Quotes:
“It too has been hoping for inflation to rise for a long time.”
“And indeed things seem to look a little better in Japan in this respect recently than in Sweden. At least a certain uptrend has become discernible over the past few months.”
‘The question is whether this trend is sustainable. We are still doubtful. And as a result we consider the risk of further expansionary measures on the part of the BoJ to be very high.”
“The June data due for publication tonight are likely to provide an insight in this respect. A glance at the data for Tokyo, where the June data is already available, does not exactly give cause for optimism though. Here prices fell again mom. If the nationwide data turns out weak too, things will get uncomfortable for JPY tonight.”
(Market News Provided by FXstreet)