Analysts at Nomura expect the BOJ to leave its forward guidance unchanged next week, communicating that its exit remains unlikely anytime soon.
Key Quotes
“A possibility of further JGB purchase operation tweaks would be the main near-term focus, but these tweaks, if any, would not be a game changer for JPY trading.”
“The BOJ’s forward guidance should keep JGB volatility low, which would maintain the high correlation between rate spreads and USD/JPY. As a result, USD/JPY should be able to appreciate smoothly as US yields rise.”
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