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14 Nov 2014
NZD/JPY a mixed bag - BNZ
FXStreet (Guatemala) - Raiko Shareef, Currency Strategist at BNZ notes how the JPY remains front-of-mind for global investors, after the BoJ electrified markets by announce a surprise step-up in the pace of asset purchases.
Key Quotes:
“This was complemented by confirmation that Japan’s largest pension fund would re-allocate in favour of equities and foreign assets, creating a possible $200b outflow of assets from Japan”.
“Rumours that PM Abe might delay the next sales tax hike has kept the pressure on JPY, as that would worsen an already ugly fiscal picture”.
“While at risk of pushing higher in the near-term, we pick NZD/JPY to settle back below 90.0 by year-end, before heading to 86 in 2015”.
Key Quotes:
“This was complemented by confirmation that Japan’s largest pension fund would re-allocate in favour of equities and foreign assets, creating a possible $200b outflow of assets from Japan”.
“Rumours that PM Abe might delay the next sales tax hike has kept the pressure on JPY, as that would worsen an already ugly fiscal picture”.
“While at risk of pushing higher in the near-term, we pick NZD/JPY to settle back below 90.0 by year-end, before heading to 86 in 2015”.