The Yen Week – Bias is Neutral
Thursday is BOJ day in Japan, considered one of the smaller monetary policy meetings as there are no new forecasts on GDP and inflation. Kuroda and co are widely expected to keep its 'QQE with yield curve control' policy unchanged. However, a number of firms are unsurprisingly indicating that the strength of the Yen could be a focus.
Euro Volume Jumps as Investors Grab for Duration
Despite a 4-day week after Whit Monday, Euro-denominated primary issuance surged to EUR54.46bn, to produce the second highest volume week YTD. Sovereigns led supply, capitalising on the plunge in EGB yields as the 5yr/5yr EUR inflation swap rate hit a record low.
Long-Term FX Forecast: 1.10-1.15 EUR/USD Despite Fed Pricing
The Euro is doing okay. It's the second best performer so far in Q2 vs the USD (albeit miles behind the Yen, i.e. +0.7% vs +2.2%), while in June its gains are being outpaced by just the likes of the CAD and NOK.
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