Société Générale says USD/JPY above 110 the "selling zone" - adds that the FOMC unlikely to be hawkish
Commenting on both the yen and the Federal Open Market Committee, SG preview:
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- "Will the FOMC confirm talks about tapering are starting? Will they adjust the IOER? Will the median dot move to price in a rate hike in 2023? How high will growth forecasts go? There's a chance the FOMC may not provide any meaningful clarity, but we can't see them being too hawkish yet"
- "The yen has been dismal this year and hasn't even got any benefit from the most recent fall in US yields. But as USD/JPY poke sits nose above 110 again, we're back in the selling zone"