FXstreet.com (Barcelona) - Expectations that the Fed will start printing money have pushed USDJPY back down to our near term forecast of 78.00 Tuesday. According to the UBS Economics Team, “We don't expect the pair to decline further however given the risks of intervention by the Finance Ministry and of the Bank of Japan responding by easing domestic monetary policy at this month's meeting.”
Back in Europe, “Cable is set to stay supported near term given the risks the Fed eases again, though sterling's strength will prove temporary as the Bank of England is also likely to extend its current round of money printing and cut interest rates in Q4 of 2012.” the Team notes.
In other news, the SNB and the Reserve RBNZ meet this week. “We expect no change from either – the SNB will cite ongoing deflation concerns for keeping the EUR/CHF 1.20 floor target.” they add.
Back in Europe, “Cable is set to stay supported near term given the risks the Fed eases again, though sterling's strength will prove temporary as the Bank of England is also likely to extend its current round of money printing and cut interest rates in Q4 of 2012.” the Team notes.
In other news, the SNB and the Reserve RBNZ meet this week. “We expect no change from either – the SNB will cite ongoing deflation concerns for keeping the EUR/CHF 1.20 floor target.” they add.
