The dollar-yen exchange rate next week is expected to be shaped by scheduled announcements including remarks by the Bank of Japan governor, the FOMC minutes and the US ISM Non-Manufacturing Index, with expectations for rate hikes in Japan and the US becoming a market focus.
Major events scheduled for next week, 10/5–10/9, include remarks by Bank of Japan Governor Ueda, the US ISM Non-Manufacturing Index and the FOMC minutes. Domestic indicators, including Tokyo's September CPI, are also expected to attract attention.
On Monday, 10/5, the US September ISM Non-Manufacturing Index will be released. The market expects a reading of around 55.0, compared with 55.4 the previous month, and continued strength in the services sector could support expectations for additional rate hikes by the Federal Reserve.
On Tuesday, 10/6, Governor Ueda is scheduled to speak at the National Securities Conference. His remarks are expected to influence market views on the timing of the Bank of Japan's next additional rate hike. The Tokyo CPI results will also attract attention as an indication of price trends.
On Thursday, 10/8, the US FOMC minutes will be released, with participants' views after the September rate hike and the extent of discussion on future rate hikes expected to be key focuses. On Friday, 10/9, the preliminary reading of the University of Michigan Consumer Sentiment Index will be released, and trends in inflation expectations could affect the dollar-yen exchange rate.