Citi FX outlook
The latest BoJ Tankan report reveals the USDJPY breakeven target for Japanese manufacturers at 107.64 in FY2021 which is a considerable distance from current levels around 111.00 and which means little need for Japanese exporters to sell USD to hedge their export earnings at current levels.
Previously
• USDJPY: 6 – 12 months: 112.0
• USDJPY: Longer term: 112.0
• USDJPY: 6 – 12 months: 112.0
• USDJPY: Longer term: 112.0
Currently (as of Sep):
• USDJPY: 6 – 12 months: 112.0
• USDJPY: Longer term: 112.0
• USDJPY: 6 – 12 months: 112.0
• USDJPY: Longer term: 112.0
MT Bias: Moderately bearish JPY vs USD;
Neutral JPY vs EUR; Short CAD vs JPY
Tactically bearish JPY vs USD,
Commodity FX (AUD, NZD & CAD),
GBP and Asia EMFX (CNH & SGD)
No comments:
Post a Comment