- Analytics
- News and Tools
- Market News
- USD/JPY: Extended easy BoJ monetary policy suggests weaker yen ahead – CIBC
USD/JPY: Extended easy BoJ monetary policy suggests weaker yen ahead – CIBC
The USD/JPY pair is now back trading above 114.00. With no end in sight to easy Bank of Japan (BoJ) monetary policy, and yield curve control extended, economists at CIBC Capital Markets look for yen weakness ahead.
Medium-term outlook for a weaker yen into 2022
“The perpetuation of an ultra-easy BoJ policy stance is set to leave Japan alongside the eurozone and Switzerland as extending long term policy inertia, a scenario which should continue to leave the JPY on the defensive.”
“Post the re-election of the LDP, we can expect another round of fiscal stimulus. While we expect Q3 weakness to give way to a solid rebound in Q4 GDP as the economy re-opens, the extension of yield curve control will see a sizeable widening in USTJGB 10 year spreads, providing the rationale for ongoing outflows of capital looking for higher returns overseas.”
“One risk to our weaker yen scenario that bears watching is the sheer scale of existing JPY shorts. The scale of the position skew risks a JPY corrective rally should risk sentiment prove to become materially compromised into year-end, but we would still maintain our medium-term outlook for a weaker yen into 2022.”
© 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
