As the U.S. reopens after a public holiday and market closure, long-term interest-rate trends and expectations surrounding next week's monetary policy announcements are the focus. USD/JPY remains under pressure, while the U.S. 3-year Treasury auction is drawing attention.
Today's focus is on the U.S. reopening after a public holiday and market closure, the resulting market and long-term interest-rate trends, and expectations in Japan and the U.S. ahead of next week's monetary policy announcements. USD/JPY fell sharply at one point to the low ¥154 range, while EUR/USD is trading slightly higher.
Among the key events, a 3-year U.S. Treasury note auction is scheduled for 26:00 U.S. time. Outside the U.S., attention is focused on factors including Japan's daily revised GDP data and trade balance. In Japan, revised second-quarter GDP (Japan's revised GDP) and the current-conditions DI and outlook DI from the Economy Watchers Survey are due to be released.
With Japan and the U.S. due to announce monetary policy decisions next week, U.S. long-term interest-rate trends, the direction of the U.S. dollar, and expectations surrounding Japanese monetary policy are among the key market themes. In the foreign-exchange market, caution is warranted regarding upcoming price movements in light of the impact of the U.S. reopening and trends in the major markets.