Abe Lists Priorities
Activity was thin during the Asia session with Japan out on holiday. In addition to the limited trading session in the US, most pairs look set to hold on to this week’s ranges and it will likely be considered a rather decent period for risk, which navigated some potential slip-ups (mostly out of Europe) with ease. USDJPY in particular has managed to stay above 82.00, and in an interview with the Wall Street Journal, likely incoming Prime Minister Shinzo Abe warned that intervention was ‘hardly effective’, though this was noted in the context of the MoF’s recent forays into the market. In terms of plans for the BoJ, he reaffirmed his commitment to pushing for a 2% inflation target and hoped the central bank would align its ‘targets’ with the governments. Ahead today, there may be some further headlines on the EU budget but we consider it a secondary issue for financial markets. USDJPY traded 82.19-82.48 and EURUSD 1.2869-1.2881.
Click here to read the full report: UBS Morning Adviser Europe
UBS Investment Bank