HALISTER1: BOJ ‘Shock and Awe’ Stimulus Is a Risk at April Meeting: Redward

BOJ ‘Shock and Awe’ Stimulus Is a Risk at April Meeting: Redward

(Bloomberg) -- BOJ may increase monetary base to JPY100t, accelerate ETF purchases and lower interest rates by 10 bps after governor Kuroda said Japan is ready to ease without hesitation, Peter Redward, principal at Redward Associates, says in an interview.
  • Any USD/JPY boost may only provide speculators with a better level to sell dollars
    • Non-commercial positioning on CFTC as a percentage of total open interest has surged to 27%; USD/JPY was below 80.00 the last time positioning was as bullish, says Redward; click here for a chart
  • Yen strength driven by lower energy prices since mid-2014, Japan’s current account swing into surplus, a downward re- assessment of U.S. monetary policy and PM Abe’s reflationary policies
  • USD/JPY down 0.3% to 109.46; declining for fifth day
  • BOJ meeting starts on April 27
  • NOTE: BOJ will check risks, add stimulus if needed: Kuroda
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Peter Redward (Redward Associates Ltd)

To de-activate this alert, click here

UUID: 7947283