BOJ may lower forecasts
The Bank of Japan is to review its quarterly economic estimates next week when it meets on July 15.
The last time Japanese central bank issued its projections was in January. Then the BOJ expected to see domestic GDP rise by 1.1% in the fiscal year to March 2015. However, the 8% drop in y/y household spending last month may force the regulator to revise down its estimates for the nation’s economic growth. Analysts polled by Reuters estimate 0.9% GDP for the same period.
If the BOJ revised down its growth forecasts, it may initially push down USD/JPY. Then, however, of the market starts to think that the Bank of Japan may add monetary stimulus, USD/JPY may reverse up.