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27 Apr 2015
JPY is flat, ignoring Fitch’s downgrade on fiscal concerns – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that USD/JPY trades within its Friday’s range, unaffected by the rating downgrade from Fitch.
Key Quotes
“JPY is soft, but is entering the NA session within Friday’s range and right at the 100‐day MA (119.27).”
“Fitch downgraded Japan to A/stable outlook but there was limited market reaction, partially because of the high percentage of domestically held debt. The details behind the downgrade include: 1) a lack of structural fiscal measures in the budget to replace the deferred consumption tax increase; 2) the cutting of corporate tax and increase in spending; 3) an increased degree of uncertainty over the government’s commitment to fiscal consolidation.”
“Fundamental data today was limited, with the highlights this week from the BoJ meeting and slew of data, including inflation.”
Key Quotes
“JPY is soft, but is entering the NA session within Friday’s range and right at the 100‐day MA (119.27).”
“Fitch downgraded Japan to A/stable outlook but there was limited market reaction, partially because of the high percentage of domestically held debt. The details behind the downgrade include: 1) a lack of structural fiscal measures in the budget to replace the deferred consumption tax increase; 2) the cutting of corporate tax and increase in spending; 3) an increased degree of uncertainty over the government’s commitment to fiscal consolidation.”
“Fundamental data today was limited, with the highlights this week from the BoJ meeting and slew of data, including inflation.”