Case Builds For Further BoJ Easing
Suddenly it all seems to be going wrong for USDJPY. An interview with GPIF President Mitani in the weekend press suggests that any diversification of the pension fund’s portfolio away from JGBs is likely to proceed very gradually. Elsewhere, media reports claim new language could be inserted into the upcoming G20 communique, to discourage the practice of conducting monetary policy with the intention of affecting exchange rates. Then finally, adding to downside pressure in USDJPY, Japan’s Q4 GDP came in well below consensus at a feeble +1.0% y/y (cons. +2.8%).
Read the full report: UBS