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6 Feb 2013
Forex Flash: Shirakawa’s early departure can help maintain the yen’s downward trajectory - Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the announcement that BOJ Governor will step down early, on March 19 (the same day as his two Deputy-Governors leave their roles) accelerates the change of guard at the BOJ and the introduction, he assumes, of a team sympathetic to PM Abe’s desire for a weaker currency.
The yen fall on the announcement yesterday and the Nikkei has rallied overnight, the JGB market has not suffered and this is critical to the continued trend of weaker currency and stronger equities. Juckes finishes by writing, “The move has been fast, but that has been the case in past yen falls. Selling the yen is fashionable but so much ground was covered over the turn of the year that many people have been waiting and hoping for a correction to let them in, and it just hasn’t happened. On we go.”
The yen fall on the announcement yesterday and the Nikkei has rallied overnight, the JGB market has not suffered and this is critical to the continued trend of weaker currency and stronger equities. Juckes finishes by writing, “The move has been fast, but that has been the case in past yen falls. Selling the yen is fashionable but so much ground was covered over the turn of the year that many people have been waiting and hoping for a correction to let them in, and it just hasn’t happened. On we go.”