The euro came under selling pressure yesterday against a backdrop of rising global long-term interest rates, but buying momentum was weak. Expectations are growing that the yen's future direction will depend on comments from Governor Ueda (植田).
In Europe, long-term interest rates rose amid fiscal and political concerns. In response, euro-yen fell into the ¥176 range during Asian trading, while euro/U.S. dollar declined into the 1.11 range. Some stop orders are also thought to have been triggered on euro selling.
Euro selling showed some signs of settling during European and New York trading, and euro-dollar recovered into the 1.12 range. However, the market was not in a position to build euro long positions aggressively.
Comments from Bank of Japan Governor Ueda (植田) are scheduled to be released this evening. Since he took a cautious stance on additional rate hikes at his previous press conference, expectations are growing that the content of his comments could affect the yen's market direction.