The July FOMC minutes, scheduled for release at 3:00 a.m. Japan time on the night of 19 August, are the main focus, while dollar-yen remains firm near the ¥160 level. Rising US long-term interest rates and concerns about foreign exchange intervention are drawing market attention.
On 19 August, markets moved mainly around dollar-yen approaching the ¥160 level from the upper ¥159 range ahead of the release of the minutes from the July FOMC meeting. US long-term interest rates also continued to trend higher, prompting speculation that the results of the ¥16 billion 20-year government bond auction could determine the direction of exchange rates.
Market participants are becoming increasingly cautious about further gains in dollar-yen and are mindful of the possibility of intervention by Japanese authorities. Euro-dollar continued to trade in a narrow range in the upper $1.15s, while buying pressure on the dollar influenced the market at times.
Among the economic indicators scheduled for release today, there are no major US data releases. The UK CPI, PPI and RPI will be released simultaneously, while remarks by ECB President Lagarde will also be closely watched. In the afternoon, the results of the 20-year government bond auction, along with key indicators from various regions, became the main focus of market attention.
In Japan's monetary policy, the timing and number of rate hikes remain the focus, and heightened vigilance over foreign exchange intervention is expected to continue. Market participants point out that the direction of US long-term interest rates could change depending on the contents of the FOMC minutes, potentially strengthening momentum for dollar buying.