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2 Apr 2013
Forex Flash: Watch for big news from the BoJ - Societe Generale
FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale notes that the in house economists at the bank believe that the BoJ will deliver something big which seems in line with the markets expectations.
He adds that overnight, Koruda’s comments were clearly a reaction to the moves in USDJPY and Nikkei. He writes, “Trading this is less straightforward. BoJ policy looks like an implicit SNB still floor so that crushing vols below say 90 would be the rational decision. At the same time, the market is generally unwilling to sell tail risks.”
He adds that overnight, Koruda’s comments were clearly a reaction to the moves in USDJPY and Nikkei. He writes, “Trading this is less straightforward. BoJ policy looks like an implicit SNB still floor so that crushing vols below say 90 would be the rational decision. At the same time, the market is generally unwilling to sell tail risks.”