We await the key Q2 Japanese GDP Growth report, which will likely force sharp Japanese Yen moves on any surprises. Investors look to GDP figures a de facto scorecard for the effectiveness of the Bank of Japan’s hyper-aggressive Quantitative Easing measures and so-called Abenomics.
A disappointment in GDP figures would suggest the BoJ’s QE measures have been insufficient to boost economic growth and in turn fuel speculation of renewed easing measures—sending the Yen lower. The opposite also seems likely on a positive surprise: better growth could push the JPY to fresh multi-month highs. If speculation over the BoJ’s next moves is so critical to Yen forecasts, why did relative inaction last week push the domestic currency higher?
'via Blog this'
