Japan’s Tankan Corporate sentiment survey showed large manufacturers more downbeat than expected in Q3, likely highlighting the effects of a stronger JPY. The BoJ’s recent policy shift to yield curve targeting has thus far failed to provide a boost to Japanese inflation expectations.
In the US, pricing for a December Fed hike is unlikely to increase much in the near-term given the data and market conditionality of the Fed’s message, while break-evens rise in line with higher crude prices, US real yields are continuing to decline.
Therefore, relative real rates are moving in favour of USDJPY downside and we remain short the pair targeting a move down to 97.*
This trade is recorded and tracked in eFXplus Orders.
Copyright © 2016 BNP Paribas™, eFXnews™
The article is published by one of the foremost sources of Forex trading information. Link to the original article above.
from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/_1uPFig-6ns/usdjpy-staying-short-trageting-97-dec-fed-pricing-likely-capped-bnpp
from Online Forex Trading Resource http://its-veso.tumblr.com/post/151290750082
No comments:
Post a Comment