Fewer participants are expected in the US markets today because of Labor Day. Participants are reportedly advised to remain alert to selling attempts in USD/JPY amid thin liquidity.
Fewer participants are expected in the US markets today because of Labor Day, and moves in the New York foreign exchange market are expected to be limited. Caution is advised when trading USD/JPY during periods of thin liquidity.
Ahead of next week's Federal Open Market Committee (FOMC) meeting, fed funds futures are expected to price in a rate-hike probability of around 60% following the US August employment report, while movements could be influenced by the US CPI release later this week.
Federal Reserve Governor Waller (ウォラー) has indicated that he is inclined to leave current interest rates unchanged depending on inflation trends, but said that a rate hike could be considered at this month's FOMC meeting if inflation data are strong.
There is speculation that developments at the Government Pension Investment Fund (GPIF) and Norges Bank Investment Management (NBIM) could affect the US Treasury market, and concern is mounting that GPIF may shift assets into domestic investments. NBIM has proposed raising the allocation to Japanese government bonds, which could affect long-term US interest rates.
The expected USD/JPY range is an upper level of ¥156.75 and a lower level of ¥153.07.