JPY: Softer Japanese GDP may just be noise - ING

Sandeep Kanihama FXStreet Contributor

Analysts at ING suggest that their USD/JPY profile is neutral largely on the back of better US activity data and the ongoing Fed hiking cycle.

Key Quotes

“But there are growing risks of a short, sharp correction in global equity markets - meaning the risk of a brief retest of 110 before year-end. Signs of global risk being taken off the table this week could keep JPY supported.”

“Our economists note that Japanese 3Q GDP date this week (Tue) is due a pullback from the 2Q surge. We are looking for only a 0.9% annualised growth rate, down from 2.5%, and a little lower than the consensus 1.5%. But absent a negative figure, trend growth in Japan will remain on a decent trajectory. This volatility is just noise and shouldn't invoke greater BoJ easing sentiment per se.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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