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28 Mar 2014
JPY; Sales Tax Incoming - a weaker Yen? – RBS
FXStreet (Guatemala) - Strategists at RBS explained the introduction of the sales tax will take place on April 1st.
“The quarterly BoJ Tankan Survey is released for the first quarter, and any signs that business confidence has slipped in anticipation of the sales tax increase may increase easing BoJ easing expectations and weaken the JPY”.
“BoJ Governor Kuroda recently said that the BoJ would not hesitate to take additional action if required, but generally the BoJ has sounded fairly neutral on their current accommodative stance given the outlook for prices and the economy”.
“In any event, short-term US interest rates will likely be the key driver of USD/JPY next week amid key US data releases”.
“The quarterly BoJ Tankan Survey is released for the first quarter, and any signs that business confidence has slipped in anticipation of the sales tax increase may increase easing BoJ easing expectations and weaken the JPY”.
“BoJ Governor Kuroda recently said that the BoJ would not hesitate to take additional action if required, but generally the BoJ has sounded fairly neutral on their current accommodative stance given the outlook for prices and the economy”.
“In any event, short-term US interest rates will likely be the key driver of USD/JPY next week amid key US data releases”.