Jullier: There is Room for BOJ Disappointment
As bond investors remain glued to their screens for the Bank of Japan’s policy review decision on Wednesday, Tokyo’s foreign-exchange traders may be looking to the Federal Reserve’s announcement hours later. The yen is set for three straight quarters of gains, the longest rally since 2011, in the wake of the BOJ’s decision to leave its bond-buying program unchanged in July and to adopt negative rates in January. Whether Governor Haruhiko Kuroda decides to widen the gap between long- and short-term yields, or cut rates, currency strategists say the biggest threat to the yen would be signs of hawkishness from Fed Chair Janet Yellen. Over the past two years, Japan’s currency has a greater tendency to move with changes in U.S. short-term yields than with those locally, data compiled by Bloomberg show. Citigroup Global Global Head of Equity Trading Strategies Antonin Jullier discusses with Bloomberg's Anna Edwards on "Countdown."