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Exercise-Discipline
Feb 18, 2017 5:15 PM

EURJPY LONG: Eurozone inflation to keep ECB on their toes 

EURO / JAPANESE YENICE

Description

ECB will begin tightening at some point - given the rising Euro area inflation.

Current account surplus of the Eurozone is also strong versus Japan.

Japan cannot tighten conditions at this point. Even if they do - JPY may not strengthen as it will lose its value as a funding currency. Furthermore, all other central banks will be tightening at that point anyway.
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