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13 Mar 2013
Forex Flash: Central banks in focus this week – UBS
Over the next 36 hours, three central banks are due to issue policy decisions, and Australian employment numbers are also due. In the meantime investors seem disinclined to shift positions aggressively, although the USD/JPY is still being weighed down by continued uncertainty over the parliamentary ratification process for the proposed new BoJ leadership.
According to Research Analyst Gareth Berry at UBS, “We are not overly concerned here - even though the main opposition party (DPJ) has announced its intention to oppose Kikuo Iwata for Deputy Governor, he is still likely to secure parliament's stamp of approval thanks to support from other smaller opposition parties.”
The vote itself is likely to happen on Friday, removing yet another obstacle to the USD/JPY's ascent from here. Before the SNB and Norges bank give their verdicts on Thursday, attention will focus on whether the RBNZ sees any risks to growth arising from the drought which is currently afflicting the country and which has held back NZD7USD over recent days – new quarterly forecast revisions will be key here.
According to Research Analyst Gareth Berry at UBS, “We are not overly concerned here - even though the main opposition party (DPJ) has announced its intention to oppose Kikuo Iwata for Deputy Governor, he is still likely to secure parliament's stamp of approval thanks to support from other smaller opposition parties.”
The vote itself is likely to happen on Friday, removing yet another obstacle to the USD/JPY's ascent from here. Before the SNB and Norges bank give their verdicts on Thursday, attention will focus on whether the RBNZ sees any risks to growth arising from the drought which is currently afflicting the country and which has held back NZD7USD over recent days – new quarterly forecast revisions will be key here.