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6 Aug 2013
Flash: BoJ to weigh on USD/JPY, strong buy below 97.00 – Westpac
FXstreet.com (New York) - Sean Callow, a Global FX Strategist at Westpac analyzes the outlook for the EUR/USD and USD/JPY.
Key quotes
“The EUR/USD should benefit from a lull in ECB easing expectations, even if we have little sympathy for those suggesting the Eurozone economy is on the improve. However, price action suggests 1.3400 remains a stretch target; perhaps the high 1.33s are more realistic for fresh shorts.”
Meanwhile, “a fourth consecutive week of Japanese net buying of foreign bonds adds to our inclination to buy dips – patchy US data and a firmly on hold BOJ (Thursday) should weigh modestly on the USD/JPY on the week, presenting buying opportunities around 97/ high 96s.”
Key quotes
“The EUR/USD should benefit from a lull in ECB easing expectations, even if we have little sympathy for those suggesting the Eurozone economy is on the improve. However, price action suggests 1.3400 remains a stretch target; perhaps the high 1.33s are more realistic for fresh shorts.”
Meanwhile, “a fourth consecutive week of Japanese net buying of foreign bonds adds to our inclination to buy dips – patchy US data and a firmly on hold BOJ (Thursday) should weigh modestly on the USD/JPY on the week, presenting buying opportunities around 97/ high 96s.”