Week in FX Asia – Yen Continues Weak Trend

The yen remains under strong pressure and is currently testing the critical 90 level. The downward spiral could continue into next week, as Prime Minister Abe has been continually talking about lowering the currency’s value and has been leaning on the Bank of Japan to implement further easing steps which will push the yen down even further. Bank of Japan Governor Masaaki Shirakawa stated that the BOJ will introduce further monetary easing steps, and warned that the economy would continue to struggle due to weak global conditions. The BOJ implemented monetary easing throughout 2012, and is widely expected to follow suit at a policy meeting next week. Analysts expect the central bank to double its inflation target to 2%, which is the government’s stated target.

 

WEEK AHEAD

  • JPY Bank of Japan Rate Decision
  • AUD Consumer Prices Index
  • JPY Bank of Japan Monthly Economic Report
  • GBP Bank of England Minutes
  • GBP Jobless Claims Change
  • CAD Bank of Canada Rate Decision
  • JPY National Consumer Price Index
  • GBP Gross Domestic Product
  • CAD Bank Canada Consumer Price Index

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza