Shinzo Abe taking a hard-line on N.Korea - ANZ

Ross J Burland FXStreet

Analysts at ANZ noted that the Japanese PM Shinzo Abe secured a strong mandate for more ultra-easy monetary policy over the weekend and explained implications for currencies and N.Korea.

Key Quotes:

"The ruling coalition retained its two-thirds majority in the 465 member lower house in their weekend election. The election outcome should provide a near-term boost for Japanese equities, and given the relationship between the Nikkei and USD/JPY, should see USD/JPY test this year’s highs around 115.

While the NZD has been under pressure too, weakness in the JPY is likely to compete for the limelight providing an offset. The other outcome is North Korean tensions will continue to simmer, with Shinzo Abe taking a hard-line and earlier agreeing to step up a defence cooperation deal and military ties with the US."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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