Forex Flash: Rumours circulate around USD/JPY 83 – BBH
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USD/JPY
FXstreet.com (Barcelona) - The analysts at Brown Brothers Harriman note that there is strong market talk of $1.2bln in offers ahead of the USDJPY 83 level.
The pair has, however, held above JPY82 now for the second consecutive session. In the four days this week before today, the yen has lost about 1.4% against the Dollar and 2.5% against the Euro and almost 2% against the Australian dollar.
They believe that the key driver of the Yen's decline is that the LDP, under Abe's leadership, is expected to head up the next government. He has been staking out aggressive position in terms of monetary policy and ensuring the BOJ will do the government's bidding.
In an interview today, the team note that he played up the use of fiscal policy levers. "He has suggested a JPY200 trln public works program, which may be financed by new debt. Abe is also suggesting waiving the implementation of the retail sales tax (2014), for which there is an opt-out clause relating to the strength of the economy."
The pair has, however, held above JPY82 now for the second consecutive session. In the four days this week before today, the yen has lost about 1.4% against the Dollar and 2.5% against the Euro and almost 2% against the Australian dollar.
They believe that the key driver of the Yen's decline is that the LDP, under Abe's leadership, is expected to head up the next government. He has been staking out aggressive position in terms of monetary policy and ensuring the BOJ will do the government's bidding.
In an interview today, the team note that he played up the use of fiscal policy levers. "He has suggested a JPY200 trln public works program, which may be financed by new debt. Abe is also suggesting waiving the implementation of the retail sales tax (2014), for which there is an opt-out clause relating to the strength of the economy."
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