The dollar/yen pair fell toward the ¥156 range, while expectations emerged that the BOJ could deliver a substantial rate hike in September. In overseas markets, remarks by Fed officials and the release of U.S. economic data are cited as factors to watch.
In the latest developments, the dollar/yen pair traded in the lower half of the ¥157 range in Tokyo, after briefly strengthening toward around ¥158.97 in the early part of the session. Yen buying then regained the upper hand, sending the pair down to the ¥157.20 level in the afternoon. The pair is currently showing signs of falling toward the ¥156 range.
As for the outlook in overseas markets, some market participants expect the BOJ to raise rates by 50 bp at its September meeting. If this expectation becomes a market focus, the dollar/yen pair could test levels below ¥156. Speeches by Fed Governor Waller and Beth Hammack, president of the Federal Reserve Bank of Cleveland, are scheduled for tonight. The ISM services index for the U.S. was also due to be released in the New York session the previous day, and remarks concerning the September FOMC are attracting attention.
Tonight's events include Turkey's August consumer price index at 16:00, Switzerland's second-quarter GDP at 16:00, France's revised August services PMI at 16:50, Germany's revised August services PMI at 16:55, the euro area's revised August services PMI at 17:00, the U.K.'s revised August services PMI at 17:30, the euro area's July producer price index at 18:00, the U.S. August Challenger job cuts figure at 18:30, the U.S. July trade balance at 21:30, ☆ U.S. initial jobless claims at 21:30, ☆ a speech by Fed Governor Waller at 21:30, the U.S. revised August services PMI at 22:45, ☆ the U.S. August ISM services index at 23:00, ☆ a speech by Beth Hammack, president of the Federal Reserve Bank of Cleveland, at 28:00, and a speech by Austan Goolsbee, president of the Federal Reserve Bank of Chicago, at 28:55. Items marked with ☆ are identified as particularly noteworthy.
Looking ahead, the outlook for the dollar/yen trading range may fluctuate depending on developments in European and U.S. markets. Comments on BOJ monetary policy and U.S. interest-rate decisions may affect the market.