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13 May 2013
Forex Flash: JPY in focus after G7 – Deutsche Bank
FXstreet.com (Barcelona) - The yen continues to be in focus after briefly trading above 102 during the Asian session this morning before meeting resistance. Over the weekend, G7 finance ministers and central bankers reaffirmed their February commitment to "not target exchange rates", according to UK Chancellor Osborne.
Though a communiqué was not released, German Finance Minister Schaeuble said after the meeting that "we had a very intense discussion about Japan with our Japanese colleagues." Other topics discussed included the scope for slower austerity in Europe and potential asset purchases by the ECB. Draghi did say that there wasn't a call for the ECB to take further steps to ease policy, playing down suggestions that the ECB was considering a program similar to the Bank of England's Funding for Lending Scheme. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “officials are focusing on clarifying the strategy so markets don't overreact about their next moves.”
Though a communiqué was not released, German Finance Minister Schaeuble said after the meeting that "we had a very intense discussion about Japan with our Japanese colleagues." Other topics discussed included the scope for slower austerity in Europe and potential asset purchases by the ECB. Draghi did say that there wasn't a call for the ECB to take further steps to ease policy, playing down suggestions that the ECB was considering a program similar to the Bank of England's Funding for Lending Scheme. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “officials are focusing on clarifying the strategy so markets don't overreact about their next moves.”