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10 Apr 2013
Forex Flash: Cat and Mouse a la Japonaise - Societe Generale
FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale notes that today will see the release of Japanese securities flows data, including the size of flows and the type of assets bought, but not their allocation per currency or the amount of FX hedging.
He sees the market and Japanese investors are all waiting for it. He writes, “The cross currency market, EM/FX, USD/JPY and EUR/JPY all assume strong flows are going through. The roughest guestimate based on daily data from South Africa suggests that around 13.5bn USD in foreign bonds were bought on the Japan QE theme and continue to be. Any big number should be enough to satisfy the market and continue its trend.”
He sees the market and Japanese investors are all waiting for it. He writes, “The cross currency market, EM/FX, USD/JPY and EUR/JPY all assume strong flows are going through. The roughest guestimate based on daily data from South Africa suggests that around 13.5bn USD in foreign bonds were bought on the Japan QE theme and continue to be. Any big number should be enough to satisfy the market and continue its trend.”