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4 Feb 2013
Forex Flash: Japanese Yen rhetoric likely to calm ahead of G20 – BBH
Brown Brothers Harriman analysts suspect that Japanese rhetoric about the yen is likely to be more tempered in the run up to next the upcoming G20 meeting.
They feel that Japanese officials will still defend recent price developments as an unwinding of the Yen´s excessive strength, but will likely refrain from specifying comfort levels. The team write, “Japan is expected to report a small current account surplus for December, where the income from past investments offsets a little more the increasingly persistent trade deficit. Separately, there does appear to be a recovery in the industrial sector taking place and we expect this to be reflected with an increase in core machinery orders.”
They feel that Japanese officials will still defend recent price developments as an unwinding of the Yen´s excessive strength, but will likely refrain from specifying comfort levels. The team write, “Japan is expected to report a small current account surplus for December, where the income from past investments offsets a little more the increasingly persistent trade deficit. Separately, there does appear to be a recovery in the industrial sector taking place and we expect this to be reflected with an increase in core machinery orders.”