The Bank of Japan (BoJ) will announce its final monetary policy decision of the year on Tuesday. The economists of Commerzbank They analyze the Yen’s prospects before the meeting.
Will the BoJ hint at a change of course?
There were a thousand reasons to normalize before. And there may be plenty of reasons to normalize in the near future (if inflation turns out to be more persistent). But right now (and certainly in January) is the stupidest time to do it.
Now, in the case of the BoJ, you can never rule out the possibility that it does things that seem irrational to you. So I’m not at all saying that those signals from Tuesday are completely ruled out. But they would be “noise”, something to which fundamental analysis is closed.
I am not advising anyone to ignore the Yen exchange rate risks regarding Tuesday’s session. But at the same time, I cannot advise anyone to bet on the strength of the JPY. Because a rational BoJ would not send such signals this week.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
