Subscribe to RSS

Market Too Quick To Write Off BoJ Surprise; Buy USD/JPY

The market greeted last Friday’s (December 18) announcement by the Bank of Japan of enhancements to its QQE program with shrugged shoulders, notes Goldman Sachs.

“The JPY is stronger against the USD, and a common response is this latest action represents the limit of the BoJ’s current capacity and willingness to ease. We think this is wrong. Camouflaged as a ‘technical adjustment’ the BoJ has delivered a small but significant easing, indicating their ongoing commitment to reflate the economy and underscoring BoJ/Fed policy divergence in the week of the Fed’s historic rate hike,” GS argues.

For us, these additional measures are not a symbol of impotence, but a reiteration of the BoJ’s commitment to achieving its objectives by future-proofing and improving the effectiveness of the current QQE program.

For latest trades & forecasts from major banks, sign-up to eFXplus

We push back on expectations that the BoJ is unlikely to ease further in the near-term – our Japan economists retain their forecast for upcoming easing in April to counter the declines in inflation expectations. And although there is concern that the split vote (6-3 in favour) on the measures taken on Friday indicate a lack of enthusiasm on the Policy Board for renewed stimulus, we would point to the obvious counter-example of the October 2014 QQE2 announcement, which was taken with a 5-4 majority. This latest meeting does not represent the ‘last gasp’ of the BoJ,” GS adds.

We think the BoJ is closer to easing further to attempt to achieve a successful reflation than it is to giving up altogether, and so we continue to expect $/JPY higher.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

FX Circuits Live Forex Trading Contest – Forex Time

FX Circuits Live Forex Trading Contest – Forex Time(0)

ForexTime latest Live Contest Win cash prizes from a $400,000 total prize pool. FX Circuits rewarding clients with real, withdrawable from a $400000 total prize pool.* Link:  FX Circuits Live Trading Contest Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions Link:  200% Withdraw able Cashback Rebates Available to:   New Clients only Contest Offer: ForexTime

20% Unlimited Bonus on Your First Deposit – FidelisCM

20% Unlimited Bonus on Your First Deposit – FidelisCM(0)

20% Unlimited Bonus On Your First Deposit to All new traders. If you have a $30 Deposit Account with FidelisCM then add wings to your ambitions and receive a 20% Tradable Bonus Link:  20% Bonus On Your First Deposit Available to: All new traders Ending Date: 30 June 2017 Bonus Offer: Get 20% Unlimited Bonus

100% Real Money Cash-Back Bonus Promotion – UFX

100% Real Money Cash-Back Bonus Promotion – UFX(0)

100% Real Money Forex CashBack Promotion to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Forex Cashback rewards bonus program Link:  $5000 BitCoin Rewards Bonus Promo Link:  $50 Forex No Deposit Special Bonus Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Bonus

Get 25 EUR Welcome Free Forex Promotion – Tradeiam

Get 25 EUR Welcome Free Forex Promotion – Tradeiam(0)

Get 25 EUR Welcome Free Forex Promotion first 100 persons who become a client of the Tradeiam Company in any country. The Free Bonus amount of €25 will be deposited by the Company in the Clients Trading Account Link:  25 EUR Free Welcome Promotion Available to: All new traders Ending Date: 31 December 2018 Bonus

100% Bonus on your $100 Minimum Deposit – AvaTrade

100% Bonus on your $100 Minimum Deposit – AvaTrade(0)

100% Forex Special Bonus Offer to your first deposit Up to $300. Start trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer:

100% Binary Cash Match up to $1000 – Markets World

100% Binary Cash Match up to $1000 – Markets World(0)

100% Binary Options Cash Match up to $1000. We’ll match your first deposit with up to $1000 To claim this match , simply enter voucher code 100CM in the deposit section. Link:  $10 Binary Options No Deposit Bonus Link:  100% Binary Options Deposit Bonus Bonus Ending Date: 31 December 2018 100% Binary Options Cash Match

Free Forex Trading Signals via SMS and Email – Trade12

Free Forex Trading Signals via SMS and Email – Trade12(0)

Receive Forex Trading Signals for Free via Phone SMS and Email to all Trade12 new traders and 100% Forex Welcome Deposit Bonus to your Live Trading Account. Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  50% Exclusive Deposit Bonus Available to: All new clients Ending Date: 31 December 2016 Bonus

$100 Free Bonus and $30 No Deposit Bonus – AYREX

$100 Free Bonus and $30 No Deposit Bonus – AYREX(0)

$100 Free Win in just one hour No deposit required bonus Binary Blast the Contest is a competition open to all AYREX account holders via demo accounts created automatically upon registration and used solely for contest participation Link:  $100 Free Win in Just One Hour Link:  $30 Binary Options No Deposit Bonus Link:  30% Binary

Welcome Bonus Account Risk-Free with $30 – Tickmill

Welcome Bonus Account Risk-Free with $30 – Tickmill(0)

Free Welcome Bonus Account Risk-Free with $30. Experience one of the best forex trading environments in the industry risk-free with $30 Welcome Bonus Account. Link:  Weekly Demo Race Trading Contest Link:  $30 Forex Free Welcome Bonus Link:  Forex Monthly Live Trading Contest Available to: All new traders Ending Date: 31 December 2018 Bonus Offer: Free

Earn $30 Forex Trade-able Credit Bonus – Forex Time

Earn $30 Forex Trade-able Credit Bonus – Forex Time(0)

Switch to ForexTime and Earn $30 Forex Trade able Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and Earn $30 tradeable credit as a thank you for switching. Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback Promotions Link:  $4 Cashback back for

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories