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3 Apr 2013
Forex Flash: Expect market disappointment at BoJ meeting - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the two-day BOJ meeting also ends Thursday, and they continue to see scope for market disappointment that leads to a yen rebound.
They feel that much has already been priced in, and it will be hard for the central bank to “shock and awe” markets that are already expecting more aggressive action under the new BOJ leadership. They write, “Even Abe is backtracking a bit, saying earlier this week that the BOJ may not meet the new 2% inflation target over the course of two years. The BOJ will likely announce some new measures tomorrow but no matter what it does in the coming months, we continue to believe that the bulk of the yen’s weakness is already behind us.”
They feel that much has already been priced in, and it will be hard for the central bank to “shock and awe” markets that are already expecting more aggressive action under the new BOJ leadership. They write, “Even Abe is backtracking a bit, saying earlier this week that the BOJ may not meet the new 2% inflation target over the course of two years. The BOJ will likely announce some new measures tomorrow but no matter what it does in the coming months, we continue to believe that the bulk of the yen’s weakness is already behind us.”