Following up on this from last week:
ANZ … targeting a move toward 150. The bank believes that this trajectory will hold unless there’s a substantial shift in the rate outlook for either the U.S. or Japan. While intervention from policymakers could pose a risk, ANZ anticipates that mere verbal intervention, or “jawboning,” will suffice until the 150 threshold is reached.
- Rate Outlook: ANZ suggests that a significant change in the monetary policy outlook for either the U.S. or Japan is a prerequisite for altering the bullish trajectory.
- Intervention Risks: Though ANZ acknowledges the possibility of intervention by policymakers to stabilize the currency pair, they believe the threshold for action is likely around the 150 level.
- Jawboning: ANZ predicts that until the 150 mark is breached, authorities are likely to rely on verbal interventions rather than actual market interventions to influence the currency’s trajectory.
summary is via the folks at eFX.
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This article was written by Eamonn Sheridan at www.forexlive.com. Source