- Analytics
- News and Tools
- Market News
- JPY: BoJ a non-event; 5 reasons why investors should get ready for big volatility in the fall - BofA
JPY: BoJ a non-event; 5 reasons why investors should get ready for big volatility in the fall - BofA
eFXdata reports that Bank of America Global Research discusses its expectations for USD/JPY price action around this week's BoJ policy meeting.
"The FX market's attention to the BoJ's next MPM remains minimal with the BoJ expected to stand pat. Both USD/JPY and cross-yen vols have fallen to post-COVID-19 lows as the market has digested the initial shock of the outbreak and subsequent policy response," BofA notes.
"Looking beyond summer, we think the fall could raise USD/JPY volatility for several reasons:
Risk of snap election as early as in October and/or leadership change in Japan
Focus on the Fed's policy, in particular implementation or the lack thereof of YCT and its details.
US presidential election.
How fiscal and monetary easing in the spring is feeding into the real economy.
With a recovery in Japan's basic balance of payments and proactive trading in US equities by Japanese investors, USD/JPY may be more sensitive to the US's idiosyncratic risk.
Lastly, near-term focus is on the COVID-19 outbreak in the US, and the recent pickup in infection cases in Tokyo," BofA adds.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
