Wwe remain of the view that the USD should be bought on dips. Regardless of the most recent weaker than expected employment data we expect the Fed to stay on track with considering higher rates later this year. It must be noted too that Fed member Williams just recently said that the latest labour data still marks progress and that he still expects a lift off this year.
In Japan the BoJ left monetary policy unchanged, fully in line with expectations. At the same time they kept a relatively constructive stance as when it comes to the economy. However, the main focus will be on the 30 October meeting, in which the central bank will issue revised forecasts. We stay of the view that a more aggressive policy stance will be considered later this year. Accordingly we remain in favour of selling JPY rallies, for instance against the USD.
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