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18 Apr 2013
Forex Flash: Currency wars still loom as G20 meets – Deutsche Bank
FXstreet.com (Barcelona) - According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Turning to the overnight news, the G20 is expected affirm its commitment to avoid competitive currency devaluations in a draft communiqué being prepared for this week's IMF/G20 meetings.”
The USD/JPY initially traded lower following the headline, though it has since rallied back up towards 98.00 to be unchanged on the day, probably because the language essentially maintains the G20's pledge made in February to “move towards more market-determined exchange rates". Staying in Japan, local newswires are reporting that the BoJ will raise its forecasts for consumer price growth and may say it expects to achieve 2% inflation as early as spring 2015 at its policy board meeting on April 26.
The USD/JPY initially traded lower following the headline, though it has since rallied back up towards 98.00 to be unchanged on the day, probably because the language essentially maintains the G20's pledge made in February to “move towards more market-determined exchange rates". Staying in Japan, local newswires are reporting that the BoJ will raise its forecasts for consumer price growth and may say it expects to achieve 2% inflation as early as spring 2015 at its policy board meeting on April 26.