All eyes on the BoJ next week – TDS

Strategists at TD Securities have noted the relevance of the BoJ 2-day meeting due on April 27-28.

Key Quotes

“What they should do versus what they will do; standing idle risks strengthening the JPY”.

“Faced with downgrades to growth, inflation, the recent earthquakes and discomfort with the currency, the BoJ will have enough cover to deliver a token ease likely in the form of a doubling of ETFs purchases though there is a nontrivial risk this is accompanied with rate relief in its loan support program”.

“This leaves scope for tactical USDJPY upside but ultimately we do not expect BoJ efforts to resonate with markets over the medium-term”.