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15 Jan 2015
JPY buying flows ahead – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, JPY might see investment inflows due to the recent yield flattening caused by QQE II.
Key Quotes
“Towards the end of FY2015, Japanese companies will likely disburse some scheduled outward investments. Imports, at the same time, will likely decrease as recent trade data suggests export recovery and import shrinkage in terms of the trade volumes. But by the middle of February, JPY appreciation pressure may start to grow. The recent yield flattening under QQE II may encourage investment inflows to Japan2, as I had touched on last week. JPY appreciation may be here to stay in Q1 we think before depreciation pressures resume again.”
Key Quotes
“Towards the end of FY2015, Japanese companies will likely disburse some scheduled outward investments. Imports, at the same time, will likely decrease as recent trade data suggests export recovery and import shrinkage in terms of the trade volumes. But by the middle of February, JPY appreciation pressure may start to grow. The recent yield flattening under QQE II may encourage investment inflows to Japan2, as I had touched on last week. JPY appreciation may be here to stay in Q1 we think before depreciation pressures resume again.”