The US FOMC, ECB and Bank of Japan policy meetings are scheduled in succession this week, along with announcements on rate cuts or hikes in New Zealand and Canada. With the market becoming increasingly cautious ahead of a concentration of events from midweek onward, dollar-yen is likely to trade mainly in a range from the mid-¥156s to the mid-¥157s.
The US FOMC is scheduled to announce its decision on Wednesday, the ECB Governing Council on Thursday and the Bank of Japan's monetary policy meeting on Friday, while policy rate announcements from New Zealand and Canada are also due. In the US, the advance third-quarter GDP figure and the PCE price index, which the Federal Reserve closely monitors, are also due to be released, while the UK budget proposal will attract attention. With these events concentrated in the same week, investors are expected to remain cautious and watch developments.
Dollar-yen is expected to trade mainly in a range from the mid-¥156s to the mid-¥157s. A break below the ¥156 level could accelerate the downside, while buying at ¥157 may require caution. The euro and pound are likely to be influenced by risk-aversion yen-buying pressure and dollar strength depending on the market reaction after the FRB, ECB and BOJ meetings.