ICYMI – Citi base case is for no USD/JPY intervention earlier than 160

Noticed a view from Citi on the information wires.

• Citi Analysis anticipates that the Japanese authorities may intervene to assist the yen if the USD/JPY trade charge reaches the 160.00–165.00 vary.

Citi’s expectations had been from earlier than remarks from Financial institution of Japan (BoJ) Governor Kazuo Ueda on Monday,.

Extra:

• Ministry of Finance (MoF) could also be getting ready for intervention, however Japan’s monetary authorities are prone to prioritize a possible charge hike by the BoJ if circumstances permit.
• Citi believes intervention is unlikely except USD/JPY surpasses 160.00.
• If this threshold is crossed, the likelihood of the BoJ elevating charges to zero.5% at its Dec. 18-19 assembly will increase.
• On this case, senior BoJ officers may start issuing extra hawkish indicators to arrange the marketplace for such a transfer.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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