Forex Flash: Yen not having much leeway to appreciate - Bank of Tokyo Mitsubishi UFJ
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USD/JPY
FXstreet.com (Barcelona) - The Obama's win in the U.S. presidential election, according to Bank of Tokyo Mitsubishi UFJ FX Team, guarantees two scenarios:
i) reaffirms continuous monetary expansion as exemplified in QE3, but ii) also reinforces the political difficulties ahead with a divided Congress in handling the "fiscal cliff", the bank's analysts say.
"The fiscal issue will not be resolved immediately. Between the two safe havens, we see USDJPY downside risk being limited as such. This is especially as the balance of flows in Japan continues to reflect a greater degree of outflows" BTMU notes.
For the first time, Japan recorded a current account deficit in September on a seasonally adjusted basis, and this, according to the bank, "is a clear signal that the JPY does not have much leeway to appreciate."
i) reaffirms continuous monetary expansion as exemplified in QE3, but ii) also reinforces the political difficulties ahead with a divided Congress in handling the "fiscal cliff", the bank's analysts say.
"The fiscal issue will not be resolved immediately. Between the two safe havens, we see USDJPY downside risk being limited as such. This is especially as the balance of flows in Japan continues to reflect a greater degree of outflows" BTMU notes.
For the first time, Japan recorded a current account deficit in September on a seasonally adjusted basis, and this, according to the bank, "is a clear signal that the JPY does not have much leeway to appreciate."
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