Bloomberg News reported that analyst at Nomura Holdings Inc are recommending buying USD/JPY between the current price and 101.75 before the FOMC Meeting.
Lahore, Pakistan -- (SBWIRE) -- 03/18/2014 -- Bloomberg News reported that analyst at Nomura Holdings Inc are recommending buying USD/JPY between the current price and 101.75 before the FOMC Meeting. This is what Nomura analysts, including Jens Nordvic and Yujiro Goto, wrote in an e-mail yesterday: “The FOMC meeting this week could be a catalyst for USD gains. We think removal of guidance related to the 6.5 percent unemployment threshold will weaken the Fed’s forward guidance on the margin, which could see some increase in US rates and USD support.”
“I expect the Fed to taper asset purchases by another $10 billion,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “There are a lot of investors wanting to buy the dollar on dips.” This will be Federal Open Market Committee first meeting since Janet Yellen took over as the FED Chairman from Ben Bernanke. It is expected that in this FOMC Meeting, the FED officials will scrap their 6.5% unemployment rate threshold and instead switch to qualitative guidance for signaling.
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