FXStreet (Barcelona) – Yujiro Goto, FX Strategist at Nomura, notes that the stronger Q1 GDP upgrade has resulted in markets paring back any near-term easing expectations.
Key Quotes
“..a Bloomberg survey showed a further decline in market expectations for a near-term BOJ easing. Only two economists (6%) expect the BOJ to ease by July, compared with 10 economists (28%) expecting easing by July a month ago. Only 17 out of 35 researchers (49%) now expect the BOJ to ease by end-2015, compared with 61% expecting easing this year a month ago.”
“The stronger Q1 GDP upgrade likely reduced market expectations for a BOJ easing, while recent comments from BOJ officials may have also influenced market expectations. A BOJ easing this year is no longer a clear consensus in the market, which limit any downside risk of USD/JPY into the BOJ meeting this Friday too.”
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