The outcome of the BOJ Monetary Policy Meeting and Governor Ueda (植田)'s press conference will be the market's focus. While expectations are strengthening that rates will remain unchanged after the previous hike, attention is also turning to clues in the Outlook Report and the timing of future rate hikes.
In Western markets on the 29th, the U.S. dollar was soft, while USD/JPY briefly reached elevated levels and falling long-term yields weighed on the dollar. Preliminary U.S. GDP exceeded market expectations, but long-term yield trends remained the main focus across the markets.
Reserve Bank of New Zealand (RBNZ) Governor Breman (ブレマン) said all members agreed that further rate hikes remained possible, and the market sees a high likelihood of a hike at the next policy meeting in December. The RBNZ held its policy rate at 2.75% at its October meeting in a close 4–3 decision. The market is pricing in a relatively high probability of a December hike.
The European Central Bank (ECB) decided at its Governing Council meeting to leave policy rates unchanged. Attention is focused on whether the BOJ's Outlook Report and Governor Ueda (植田)'s press conference will provide clues about the timing of the next rate hike, with yen crosses expected to move depending on the BOJ meeting outcome.
The preliminary euro area GDP figure for the July–September quarter is due to be released. A result below expectations could weigh on the euro. European GDP trends could also affect cross-rates against the yen and dollar, including EUR/GBP.