Dollar/yen is trading in the mid-¥157 range, while the yen's advance has paused as AI-related stocks are bought back. With earnings from major US technology companies and the FOMC and Bank of Japan meetings scheduled for this week, euro/yen is around ¥176, and market interest is also rising in French government bond trends and the ECB Governing Council meeting.
In today's New York foreign exchange market, dollar/yen traded in the mid-¥157 range. After briefly falling into the ¥156 range, it returned to the ¥157 range on dip-buying and continued to trade there. Although a risk-averse mood spread through the market as the negative impact of factors surrounding the previous week's earnings from major US technology companies took hold, the yen's advance has paused as AI-related stocks are bought back.
With earnings from major US technology companies due this week, the focus is expected to be on whether the market can reaffirm the justification for their massive investment in AI infrastructure. The Federal Reserve's Federal Open Market Committee (FOMC) and the Bank of Japan's policy meeting are also scheduled for this week. Although rates are widely expected to remain unchanged, attention will be focused on whether the meetings indicate the possibility of an additional rate hike.
While some expect the yen to regain its status as a safe-haven currency, the euro has fallen into the $1.11 range, and euro/yen has been observed trading around ¥176. Turmoil in France has provided only temporary support, and French government bond yields are attracting market attention ahead of the ECB Governing Council meeting.
In the UK, Chancellor Healey is expected to publish the budget this week. Securing fiscal soundness amid spending pressures and the response to inflation is expected to be a challenge. How to balance support for households and businesses with fiscal soundness is attracting market attention.