In regard to this weekend's election in Italy, the greatest post-election risk is a deteriorated growth outlook rather than the backtracking of recent reforms: “Whoever wins the elections has limited room to evade the new balanced budget rule, but growth prospects may dim further if a “reform-fatigued” coalition triumphs”, said Merrill Lynch analysts.
Crossing over to Japan, all eyes remain on the dovish spirit of the government and speculation about who's going to lead the BoJ: “Whoever takes the job from among the frontrunners is likely to be closely aligned with the administration, and therefore set to strike a notably more dovish tone than current Governor Shirakawa. Looking ahead, the real test comes during the new BoJ’s first policy meeting in early April”, they wrote.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.