Forex Flash: G20 repeats G7 line; USD/JPY still expected lower - Westpac

The G20 statement out of Moscow, as Westpac FX strategist Sean Callow, notes "offered only a modest tweak compared to the Nov 2012 Mexico City statement" he says, declaring that “we will not target our exchange rates for competitive purposes”. As Sean says, "this language was already agreed to by the G7 on 12 Feb, a formulation Japan was happy to sign and one which was calmly received by USD/JPY" the strategists adds. Westpac expects USD/JPY to lose its shine in the weeks ahead on BoJ disappointment, and expects "little danger for the pair in the weekend G20 statement..." The closer near term focus, in view of Sean, "could be on who is nominated as the new BoJ governor."