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12 Mar 2014
Flash: USD/JPY suffers on poor US fundamentals - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank, explained that a factor impacting USD/JPY since the start of the year is the soft tone of the USD.
Key Quotes:
“Despite market forecasts of USD strength this year, the greenback has had a poor run on the back of weak US data. It is our central view that US growth will accelerate this year and that the USD will win back some ground”.
“A USD recovery and the fact that short positions have recovered from their recent extremes is consistent with our forecast that USD/JPY can move towards the 107.00 level on a 6 mth view”.
“A continuation of disappointing US economic data, however, would likely lead us to revising lower our USD forecasts. This would mean that the 107 target would be pushed further away”.
Key Quotes:
“Despite market forecasts of USD strength this year, the greenback has had a poor run on the back of weak US data. It is our central view that US growth will accelerate this year and that the USD will win back some ground”.
“A USD recovery and the fact that short positions have recovered from their recent extremes is consistent with our forecast that USD/JPY can move towards the 107.00 level on a 6 mth view”.
“A continuation of disappointing US economic data, however, would likely lead us to revising lower our USD forecasts. This would mean that the 107 target would be pushed further away”.