FXStreet (Barcelona) – According to Greg Gibbs, FX Trading Strategist at RBS, Kuroda’s comments on JPY depreciation are unlikely to stop USD/JPY gains towards 125 and event 130 by next year.
Key Quotes
“JPY volatility both up and down is likely to be dampened by Kuroda’s comments. However, he remains committed to using aggressive monetary policy easing to achieve inflation of 2% as soon as possible, aiming at before September next year. As such, we still expect USD/JPY to pressure 125 and potentially up to 130 over the coming year.”
“US rates have risen to new cyclical highs as expectations for a first hike later this year have firmed, this should reassert strength in the USD.”
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