The week ahead promises greater currency volatility as five major central bank interest rate decisions and US labor data threaten big moves in key pairs, but the biggest Japanese Yen moves may wait until the highly-anticipated Japanese elections due December 16. The issue at hand is simple: the Liberal Democratic Party (LDP) of Japan looks likely to take a majority of seats in the elections, and its leader Shinzo Abe has been quite outspoken in favor of aggressive monetary policy easing from the Bank of Japan. Abe said he would look for unlimited monetary policy easing and double the Bank of Japan’s 1 percent inflation target to bolster growth.
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