Michiyoshi Kato
Michiyoshi Kato
brighter buy cut dollar excuse fed good ground hike later laying outlook rate reserve sell supports target view
The bank's brighter outlook supports the view that the BOJ may cut the reserve target around April, laying ground for a rate hike later in the year. That could be a good enough excuse to buy the yen and sell the dollar when the Fed is nearing the end of its tightening cycle.
benefit bit buy extend investors japanese selling sold
Yen selling may not extend to today. Some investors sold a bit too much yen, so they may buy some back, which could benefit the Japanese currency.
data fresh further incentive industries push rate service
U.S. service industries data will be yet another fresh incentive to push up the dollar, strengthening expectations of Fed's further rate hikes.