The dollar-yen pair is expected to remain firm in European and U.S. foreign exchange markets on the 27th. Although the U.S. FRB is likely to maintain its current stance, the dollar is expected to trade cautiously amid expectations of a rate hike in December.
The article reports that the dollar-yen pair is expected to remain firm in European and U.S. markets this week. It says that stock-market reactions are settling and that yen buying as a risk-averse trade is losing momentum.
With the U.S. FOMC, the ECB Governing Council meeting and the Bank of Japan’s monetary policy meeting scheduled this week, position-adjustment trading is expected to dominate as investors take a wait-and-see approach. Attention is expected to focus on long-term interest rates and the dollar, with developments in the Japan-U.S. interest-rate differential considered important.
The dollar-yen pair was reported to have risen to the mid-¥157 range at one point today, and the strength of dollar buying may change depending on Japanese equity trends and the reaction of Asian markets. In overseas markets ahead, the focus is expected to be on the FRB maintaining its policy, expectations of a December rate hike, and the outlook for additional easing or tightening by the Bank of Japan.