- Analytics
- News and Tools
- Market News
- Recovery of the Yen to continue, but patience is needed – ABN Amro
Recovery of the Yen to continue, but patience is needed – ABN Amro
USD/JPY and EUR/JPY have started to decline. Economists at ABN Amro analyze Yen’s outlook.
Only a very gradual hiking path by the BoJ
The main driver behind the Yen recovery has been speculation that the Bank of Japan may start hiking the policy rate in March. We saw this as well at the end of last year and then the market was disappointed as the BoJ did not start its hiking cycle. Even though it may start this month, the communication and/or the pace of rate hikes may disappoint.
Despite this, we expect the Yen recovery to continue. Likely, the narrowing of the spreads between the US and Japan and the Eurozone and Japan (even though most of it is already anticipated) lead to lower levels in USD/JPY and EUR/JPY.
A diverging path in monetary policy (BoJ hiking and Fed/ECB cutting) is supportive for the Yen. But it is important to keep in mind that most action will be from the front of the ECB and the Fed. Indeed, we expect only a very gradual hiking path by the BoJ.
© 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
