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26 Jan 2016
Yen in the firing line this week - Scotiabank
FXStreet (Guatemala) - Eric Theoret, CFA, CMT
FX Strategist at Scotiabank explained that JPY remains most vulnerable
to sentiment in the current environment.
Key Quotes:
"With risk of further weakness in the event of a stabilization in oil prices brought about by greater
cooperation among oil-producing nations. We maintain a focus on the BoJ policy decision later this week, and underscore the divergence between
policymakers’ official comments with a bias to hold and unnamed officials’ calls for greater monetary accommodation."
"Risk reversals underscore a dramatic shift in demand for protection against movement in USD/JPY, with the one week measure hinting to demand for protection
against upside risk."
FX Strategist at Scotiabank explained that JPY remains most vulnerable
to sentiment in the current environment.
Key Quotes:
"With risk of further weakness in the event of a stabilization in oil prices brought about by greater
cooperation among oil-producing nations. We maintain a focus on the BoJ policy decision later this week, and underscore the divergence between
policymakers’ official comments with a bias to hold and unnamed officials’ calls for greater monetary accommodation."
"Risk reversals underscore a dramatic shift in demand for protection against movement in USD/JPY, with the one week measure hinting to demand for protection
against upside risk."