In the foreign exchange market on Monday, 21 September, the focus will be on the impact of Japan's holiday period, discussion of the BOJ's rate check, and movements in the US dollar, Japanese yen and euro.
Today's focus is on speculation over currency intervention, Japan's public-holiday schedule, and the direction of the US dollar, yen and euro. Japan's markets will be closed for public holidays from the 21st through the 23rd, while holiday trading in Nikkei 225 futures and options is also expected to be available.
A Japan–US summit is scheduled for the 22nd, and President Trump is reportedly scheduled to discuss the situation in Iran with the leaders of the Gulf states. A US–China summit is scheduled for the 24th. These events have been identified as potential market catalysts.
The BOJ's monetary policy announcement and Governor Ueda's press conference took place last week, leading to selling of the Japanese yen. However, reports of a BOJ rate check circulated in US markets over the weekend, strengthening yen-buying momentum and prompting USD/JPY to temporarily recover into the ¥158 range. EUR/USD has remained under upward pressure.
Among today's key factors, there are no particular speeches by ECB President Lagarde of Europe or Bank of Canada Governor Macklem, nor any US economic indicators scheduled for release at unscheduled times, according to the view presented. Attention is also warranted on movements in US long-term interest rates and major equity markets.