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25 Feb 2013
Forex Flash: BoJ combo Kuroda-Iwata positive for USD/JPY - Nomura
Consensus among Japanese local media reporting the same story has led Nomura research team to send out a note to its clients saying that "Mr. Kuroda is likely the first choice by the Abe cabinet."
Nomura expands: "Mainichi (local media) reported that the opposition DPJ leadership is likely to accept Mr. Kuroda's nomination. All told, we think Mr. Kuroda is highly likely to become the next BOJ governor, based on recent news reports."
"Mr. Kuroda has been saying that the BOJ monetary easing has been too little and too late since the early 2000s; compared with other BOJ governor candidates, such as Kazumasa Iwata and Toshiro Muto, Mr. Kuroda is clearly more dovish than Mr. Muto. That said, Mr. Kuroda is an ex-MOF person and thus, the announcement can be regarded as less positive for USDJPY than the nomination of Kazumasa Iwata, still slightly positive for USDJPY, perhaps worth +1% from Friday's close" Nomura adds.
In terms of other news reports, following reports from Nikkei that Kikuo Iwata will accept BOJ deputy-governor position, Nomura says that "his nomination will be surprising, as he is one of the toughest critics of BOJ monetary policy."
Kikuo Iwata's nomination as the deputy governor, in view of Nomura, "may signal the Abe cabinet's strong will to change the BOJ by putting tough critics inside the Bank." If confirmed, Nomura thinks "it would be an additional positive for USDJPY, on top of Mr. Kuroda's nomination as the governor." The official announcement is likely to be Wednesday or later, the bank concludes.
Nomura expands: "Mainichi (local media) reported that the opposition DPJ leadership is likely to accept Mr. Kuroda's nomination. All told, we think Mr. Kuroda is highly likely to become the next BOJ governor, based on recent news reports."
"Mr. Kuroda has been saying that the BOJ monetary easing has been too little and too late since the early 2000s; compared with other BOJ governor candidates, such as Kazumasa Iwata and Toshiro Muto, Mr. Kuroda is clearly more dovish than Mr. Muto. That said, Mr. Kuroda is an ex-MOF person and thus, the announcement can be regarded as less positive for USDJPY than the nomination of Kazumasa Iwata, still slightly positive for USDJPY, perhaps worth +1% from Friday's close" Nomura adds.
In terms of other news reports, following reports from Nikkei that Kikuo Iwata will accept BOJ deputy-governor position, Nomura says that "his nomination will be surprising, as he is one of the toughest critics of BOJ monetary policy."
Kikuo Iwata's nomination as the deputy governor, in view of Nomura, "may signal the Abe cabinet's strong will to change the BOJ by putting tough critics inside the Bank." If confirmed, Nomura thinks "it would be an additional positive for USDJPY, on top of Mr. Kuroda's nomination as the governor." The official announcement is likely to be Wednesday or later, the bank concludes.