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USD/JPY: Fresh lows in the coming weeks – Westpac

Last week analysts at Westpac Institutional Bank argued for an ‘eventual drop below 105.50,’ not thinking it would happen in a week. Now, they think USD/JPY is set to stabilize but fresh lows are coming in next weeks.  

Key quotes

“The BoJ should and will have no choice to throw in whatever chips left given that Japan is already in a very deep recession. One of those very obvious chips is ETF purchases given it is the part of the BoJ balance sheet that has grown the most over the last year. We would also expect to see the loans program being increased too.”

“Near term, USD/JPY should stabilise as the ECB and Fed step up, but we still expect to see fresh lows sub-103 in the coming weeks.”

 

NZD/USD: Commodity prices weighing on the kiwi – Westpac

Commodity prices remain at risk, weighing on NZD/USD, although the weaker USD will obscure the true impact, in the opinion of strategists at Westpac I
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GBP/JPY drops to fresh 5-month lows, further below mid-132.00s

The GBP/JPY cross maintained its heavily offered tone through the early European session and was last seen trading near five-month lows, below mid-132
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