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4 Apr 2013
Forex Flash: BoJ reinvigorates Yen bears - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the overnight BoJ action has surpassed consensus expectations.
He highlights that the bank were expected to boost bond buying by 50%, and have surpassed that with what looks like a 100% increase and some very dovish/open-ended commentary. He writes, “Will it deliver 2% inflation on a 2 year time-scale? - am not sure.” He continues to explain that he does think that the show of commitment is sincere/aggressive and Yen bears are right to feel reinvigorated this morning. He believes that Nikkei bulls will doubtless feel the same no doubt. He finishes by writing, “This is the kind of aggressive easing we are used to seeing from the Fed and would just love to see more of from the ECB...”
He highlights that the bank were expected to boost bond buying by 50%, and have surpassed that with what looks like a 100% increase and some very dovish/open-ended commentary. He writes, “Will it deliver 2% inflation on a 2 year time-scale? - am not sure.” He continues to explain that he does think that the show of commitment is sincere/aggressive and Yen bears are right to feel reinvigorated this morning. He believes that Nikkei bulls will doubtless feel the same no doubt. He finishes by writing, “This is the kind of aggressive easing we are used to seeing from the Fed and would just love to see more of from the ECB...”