The focus will now shift to the Bank of Japan and Federal Reserve meetings next week. We expect the Bank of Japan to announce further easing and the Fed to change the April statement to a more balanced risk assessment of the economic outlook. Our view, is that QQE has been highly effective and that the BoJ has no choice but to double down,with the most potent signal a shift back to balance sheet expansion (and away from negative rates), in sympathy with the ECB in March and consistent with Governor Kuroda’s speech at Columbia University last week. Both developments are in line with our strong conviction that USD/JPY ... (full story)