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JPY Will BOJ Follow The Fed? - September 18, 2012


Investors are now centering on if the BOJ will accompany the Federal Reserve in expanding monetary easing.

The Fed's decision a few days ago, to receive QE.3 has now put more force on the BOJ to initiate encourage movement against Yen strength. Should the BOJ not adopt any new easing policy on Wednesday, look for the Dollar-Yen to come back to the lows of last week.

As Japan's markets are closed for a national holiday today.

On Thursday last, the U.S. central bank had published its choice to broaden its monetary record with open-ended purchases of $40 billion a month of mortgage debt. It did so with an an intend to help the labor market.

On Tuesday, Fed Bank of Chicago President Charles Evans and New York Fed chief William C. Dudley, are scheduled to discuss the economy. Evans has previously urged the central bank to begin a third round of bond buying.

Overall, the U.S. Dollar remaining weak in the near term.

The Yen earlier today rose 0.2% to 102.75 per Euro after having dropped 3.1% since mid last week. It has edged higher by 0.2% to 78.25 per Dollar, its strongest level since the 9th of February.
It's nice to see what will it be...

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