The activity of the Central Banks of the G10 this week begins with the Bank of Japan, which is widely expected to keep the rates at 0.5% during the night, says the FX analyst of ING, Francesco Pesole.
Yen remains a fairly attractive coverage at this time
“But the main approach, together with any future orientation, will be in the interim review of the purchase of Japanese government bonds. Despite the speculation that the BOJ could reduce its quarterly purchases from 400 billion yen to 200 billion yen, it is expected to keep the current rhythm.”
“While the BOJ may not give many clues in terms of guidance on rates at tomorrow’s meeting, we believe that the risks are definitely biased to the hard line side. In our opinion, the markets continue to underestimate the risks of an increase in rates as soon as in July or September, which are valued by 10% and 25% at this time.”
“We believe that Yen remains a fairly attractive coverage at this time, especially if US actions face more blows to geopolitics. Excessive oil prices can affect the attractiveness of the Yen as a safe refuge, but a hard line readjustment in the expectations of the Boj should compensate for it in our opinion.”
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.
