HALISTER1: BOJ Should Skip Easing This Week, Focus on September: Citi

BOJ Should Skip Easing This Week, Focus on September: Citi

(Bloomberg) -- Best way to sustainably depreciate yen would be to forgo easing this month and announce a comprehensive policy review toward Sept. meeting, Citigroup FX strategists write in note received today.
  • USD/JPY has declined in the period immediately following all BOJ decisions this year; click here for chart
  • If BOJ postpones easing, it should maintain market expectations and minimize JPY appreciation pressure due to position unwinding, Citi says
    • Unlikely USD/JPY can advance beyond 108, even if BOJ moves as expected, with risk of a decline toward 103 or below
  • USD/JPY up 0.3% to 104.95
  • BOJ PREVIEW: Yen Exposed to Upside Risk as Easing Well- Priced In
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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