23 Aug 2013
Flash: Key event risks loom for USD/JPY – Westpac
FXstreet.com (New York) - While next week’s raft of data will be important for Japan, more important will be the CAPEX survey the following Monday for the USD/JPY, suggests Sean Callow, a Global FX Strategist at Westpac.
Key quotes
“If Q2 GDP is to be revised up, and with it the chances of the contentious sales tax increase to 8% next April and 10% in October 2015, then we will need to see a strong CAPEX outcome.”
However, the sales tax increase is set to become very much the key policy risk for Abe with the ‘knowledgeable people’ panel set to meet next week. Failure to agree to the tax hike should add to upside risk for the JPY in our view. We remain buyers of dips despite current USD strength.”
Key quotes
“If Q2 GDP is to be revised up, and with it the chances of the contentious sales tax increase to 8% next April and 10% in October 2015, then we will need to see a strong CAPEX outcome.”
However, the sales tax increase is set to become very much the key policy risk for Abe with the ‘knowledgeable people’ panel set to meet next week. Failure to agree to the tax hike should add to upside risk for the JPY in our view. We remain buyers of dips despite current USD strength.”