Verdict yen and buy bonds ECB

When the markets digested the decision of the Bank of Japan, the perception was the same as our original view that it was "too little, too late" to have any impact on the real economy and the yen. In the end, the yen has been trading on Tuesday, stronger than the dollar remains very close to the levels that preceded the first round of intervention in the middle of last month. Thus, the authorities remain on the sidelines, unable to unilaterally confront structural buying the yen, as well as the weakness of the dollar against the further quantitative easing by the Fed.


Weekly balance sheet of the ECB is out today - a day later than usual - and will scale purchases by the European Central Bank Debt peripheral eurozone countries last week. Shopping is not increased in the last few weeks, amounting to about 1 billion euros over five weeks to September 24. This is nothing compared to the levels seen at the start of the program. Even under the condition that the ECB will sterilize these purchases (unlike Britain, the United States, and probably soon, Japan), monetary impact is still taking into account the impact on profitability (ie, its reduction).

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