With the results of Japanese and US monetary policy meetings and preliminary US GDP and PCE data due this week, dollar-yen is expected to continue range-bound trading centered on ¥157.00.
While announcements of the results of Japanese and US monetary policy meetings, preliminary US third-quarter GDP data and the September PCE price index are concentrated in the latter half of this week, a wait-and-see mood is likely to spread in the first half. Dollar-yen is considered to face resistance on concerns about excessive AI-related investment, while investors looking to assess stock-market developments are also unlikely to abandon their cautious stance with earnings from the Magnificent Seven due from the middle of the week onward.
Dollar-yen is highly likely to continue range-bound trading centered around ¥157.00. Selling interest is seen at ¥157.50-158.00, while dip-buying is expected to continue at lower levels.
As for euro-dollar, Moody's kept France's credit rating at Aa3 and maintained a negative outlook. This was followed by signs of a narrowing in the yield spread between Germany and France, and the euro may remain firm. However, the view that the longer-term downtrend will continue remains strong, and selling is likely to emerge on rebounds.
Euro-yen is expected to move nervously around ¥176.00, with dollar-yen and euro-dollar both seen as primarily range-bound. The market is expected to develop while monitoring movements in euro-dollar.
Sterling is expected to remain focused this week on the UK government's Autumn Budget. If concerns about a widening fiscal deficit are not dispelled, sterling could come under selling pressure, with pound-dollar potentially finding support around the 1.3300 level. Pound-yen is expected to trade mainly around ¥210.00, but risks are seen as slightly to the downside.