FXStreet (Guatemala) – Analysts at BBH explained that they do not expect a change from BoJ next week.
Key Quotes:
“Japan’s trade balance was worse than expected in September. It posted a JPY114 bln deficit. A small surplus was expected. Exports rose a mere 0.6% compared with expectations for a 3.8% increase. In volume terms, exports have fallen nearly 4%.
It is hard to see how so many people think a 3.5% decline in the Chinese yuan will help boost their exports while a much larger decline in the yen has failed to boost the volume of Japanese exports.
It is also noteworthy that the volume of Japan’s oil imports rose 1.1%, despite the weakness in the domestic economy. In value terms, oil imports are off 44%. These trade figures do not alter our expectation that the BOJ stands pat next week.”
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