Tuesday, October 27, 2015

BoJ is the most key event - Socgen

FXStreet (Guatemala) - Kit Juckes, economist at Societe Generale, explained that the week's biggest event may be the BOJ on Friday.

Key Quotes:

"My view last week was that the QE is losing its ‘mojo' and that I would be surprised if either dovish words from the ECB or further QQE from the BoJ would have much FX impact.

There seems more chance that the BoJ can boost equities than really move the yen much. I am chastened by the way markets traded on Thursday/Friday and while I expect failure to act to strengthen the yen more than further easing will weaken it, I'm mostly committed to watching and re-assessing!

But I still believe that with the yen so cheap relative to any fundamental model from simple PPP to FEER, further BOJ action will be like pushing on a strong as far as the currency is concerned, whatever it does to equities."
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