Japanese Yen: BoJ hike offers limited Yen relief – BBH
Brown Brothers Harriman expects the Bank of Japan to resume tightening with a 25 bps hike to 1.00%, but sees limited scope for a sustained Japanese Yen rally. While lower Oil prices could help nudge USD/JPY toward 155.00, the bank argues that a more material break below this level requires a hawkish BoJ, which they deem unlikely for now.
BoJ tightening but still cautious
"The correction in crude oil prices takes some pressure off JPY and could help nudge USD/JPY lower to 155.00. But breaking materially below that level hinges on the BoJ to lean more hawkish. It’s too soon to bet on that because almost all underlying CPI indicators eased further below 2% in April."
"The BoJ is widely expected to deliver a 25bps rate increase to 1.00% (Tuesday), ending a hold streak that began after its December rate hike. There is no updated Report associated with this meeting."
"BoJ Governor Kazuo Ueda will be absence at this week’s policy meeting due to hospitalization. BoJ Deputy Governor Ryozo Himino will serve as acting chair while Deputy Governor Shinichi Uchida, will host the post-meeting press conference. Both individuals have consistently voted in line with Ueda, suggesting policy continuity and limited risk of a surprise."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Morgan Stanley: The expansion value of BHP South Australia copper mine is still underestimated, on-site inspection may become a catalyst for revaluation, “Overweight” rating maintained.
Morgan Stanley released a research report, maintaining an "Overweight" rating on BHP Group Limited (Australian shares) and a target price of 68 AUD.
Deutsche Bank remains bullish on Palo Alto Networks (PANW.US) ahead of earnings: Q1 results expected to be solid, platform advantages will help expand market share.
Deutsche Bank's latest research report predicts that Palo Alto Networks will deliver solid performance in the first quarter, with all key metrics exceeding market expectations, although the margin of outperformance may narrow compared to the previous quarter.
On the eve of Anthropic (ANT.US) IPO: $19 billion in passive buying on the way, will “SpaceX-style” index arbitrage be repeated?
From SpaceX to Anthropic: Giant new listings adopt a new approach.
Amidst extramarital affair scandal and Nvidia’s stock plummet, “The Big Short”: Short-term may be an “excellent trade,” but long-term remains bearish
Burry admitted that if he did not already hold a short position, the sharp drop caused by the scandal might be a good contrarian buying opportunity—but he himself made it clear he would not participate. The fatal risk lies in the possibility that this turmoil could trigger regulatory investigations into its "mafia-style" business practices and export controls. Combined with the risks of over-investment in AI, its competitive advantage is expected to quickly narrow, so he remains firm in his short position.
Crypto prices
More
