Forex Flash: Riksbank to decide – UBS
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USD/JPY
FXstreet.com (Barcelona) - Investors had three news items to digest overnight as the countdown to today's Riksbank decision continues write Gareth Barry and Geoffrey Yu, Strategists at UBS.
They begin by focusing on the RBA's December minutes which struck a fairly balanced tone and added little new info beyond the contents of the original policy statement. Secondly, they note that USDJPY briefly flickered to life after reports that Goevrnor Shirakawa was about to meet Japan's Prime Minister elect Abe. Shirakawa declined to comment in detail afterwards though except to say that monetary policy was not discussed. Finally, both sides of the US fiscal cliff debate appear to be slowly shuffling closer together.
They feel that the latest gestures towards compromise reinforce their conviction that a deal can still be done to avert what would be a perfectly avoidable US recession. They are expecting to see a significant boost to risk sentiment once the final agreement is finalised is reached at some point over the next few weeks.
They begin by focusing on the RBA's December minutes which struck a fairly balanced tone and added little new info beyond the contents of the original policy statement. Secondly, they note that USDJPY briefly flickered to life after reports that Goevrnor Shirakawa was about to meet Japan's Prime Minister elect Abe. Shirakawa declined to comment in detail afterwards though except to say that monetary policy was not discussed. Finally, both sides of the US fiscal cliff debate appear to be slowly shuffling closer together.
They feel that the latest gestures towards compromise reinforce their conviction that a deal can still be done to avert what would be a perfectly avoidable US recession. They are expecting to see a significant boost to risk sentiment once the final agreement is finalised is reached at some point over the next few weeks.
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