Based on the daily FX report for the 5th, the report covered the key points of Prime Minister Takaichi (高市 早苗)'s policy speech, the lack of discussion concerning the GPIF's strategic asset allocation review, and the ISM non-manufacturing index coming in below expectations. USD/JPY was expected to trade in a range centered on the latter half of the ¥157 area.
In Monday's foreign exchange market on the 5th, Prime Minister Takaichi (高市 早苗)'s policy speech explained economic policies aimed at encouraging domestic investment and creating a virtuous cycle of GDP expansion. She also referred to securing funding for a consumption tax cut without relying on special government bonds, appropriate control of government bond issuance, and a flexible response when necessary.
Bloomberg reported that although the GPIF's strategic asset allocation review had been included among the matters reported at the August meeting of its Board of Governors, no report concerning the review was made at the September meeting. It was suggested that changes in the market environment could lead to discussions on a future review.
The September ISM non-manufacturing index was 54.9, below market expectations, but remained in expansionary territory, with the index above 50.0. Input prices remained high and employment was showing signs of improvement, while new orders were somewhat sluggish.
USD/JPY was expected to trade in a range centered on the latter half of the ¥157 area. During Tokyo hours, the Bank of Japan Governor's speech, and during New York hours, remarks by Federal Reserve officials, were expected to affect the market. The latest forecast range was shown as ¥157.2 to ¥158.4.