The ECB Governing Council's actions, the TCMB meeting and the attendance of a newly added BOJ Policy Board member at a financial and economic meeting are the market's focus. The focus will be on expectations for further ECB rate hikes, the content of the TCMB's statement and the BOJ's future pace of rate hikes.
The Norwegian krone and the Australian dollar/New Zealand dollar pair moved in Western markets, while the yen also attracted attention. Comments by Treasury Secretary Bessent on intervention in the yen market heightened market caution. The Australian dollar/New Zealand dollar pair reached high levels, while the U.S. dollar/yen pair temporarily moved in a yen-strengthening direction.
The focus today is the ECB Governing Council meeting, where a 0.25% policy rate hike is expected, followed by a press conference by President Lagarde. The current policy rates are a 2.25% deposit facility rate, a 2.40% main refinancing rate and a 2.65% marginal lending rate, and the market has priced in the possibility of further rate hikes. The ECB's statement and the President's press conference are expected to influence the markets.
TCMB, Türkiye's central bank, will hold its monetary policy meeting today, with the outcome due at 20:00 Japan time. It has kept its policy rate unchanged at 37.00% for 4 consecutive meetings through the previous meeting, and the market expects another hold this time. If there are no major changes to the stance outlined in the previous statement, the Turkish lira is expected to show a limited reaction.
A newly added BOJ Policy Board member will attend a financial and economic meeting in Fukui Prefecture. Remarks are scheduled for 10:30, followed by a press conference at 14:30. The market expects a 0.25% rate hike at the next meeting in September, and attention will focus on whether any clues are offered about the pace of rate hikes thereafter.