Market movers for the week ahead - Rabobank

Analysts at Rabobank explain that today has already seen minutes from the BOJ, who discussed their controversial YCC policy which targets 10-year JGB yields at 0% (actually 0-0.1%).

Key Quotes

“Interestingly, some members noted that if geopolitical risks rose and JPY strengthened, having an impact on the economy, then the YCC guidelines could be changed: in other words, as one member noted, the target could even become negative. Elsewhere there was a view that more demand was needed to raise prices due to excess supply: how many times have we heard that before? The BOJ’s Kuroda also spoke today where he noted “There is still a long way to achieve the 2% price target,” and that the BOJ “will persistently continue powerful easing.” He also added it is “crucial people actually experience inflation above 2%.” That says it all, really, doesn’t it?”

“For the rest of the day we have final October PMIs in Europe; Eurozone PPI; and then the Canadian Ivey PMI. In terms of speakers we have the ECB’s PrintPraet, the Fed’s Harry Potter, the ECB’s Hansson, the Fed’s Dudley, and the ECB’s Mersch.”

“The rest of the week’s highlights include the RBA tomorrow on Melbourne Cup today, with German industrial production, speeches from the ECB’s Draghi and the BOC’s Poloz, and China’s foreign reserves.”

“Wednesday sees just Canadian housing starts and Chinese trade data; Thursday has the RBNZ rate decision, Japanese core machine orders, Aussie home loans, and Chinese CPI; and finally Friday has UK trade data, Indian industrial production, then US Michigan consumer confidence.”