If the 28% undecided keep the tendency intact
Indecision, but assuming we roughly keep the same balance, Abe’s LDP is heading for a landslide victory according to Nikkei Inc. latest poll.
Of course there are still 11 days of campaigning but as I expected from the start, the battle seems a little to big for Koike’s newly created Party of Hope.
Translating to the market, this means same old, same old. Keep the foot on the accommodative gas pedal and add a pinch of fiscal deficit goals to be postponed.
This increases the chances of Kuroda remaining in the seat as his mandate expires April 2018.
The JPY should remain on the defensive in this scenario, barring geo-political woes.