Analysts at Nomura suggest that the next BOJ meeting on 30-31 July represents interesting event risk for Japan trading and fundamentally, they believe the meeting will be negative for JPY in the medium term.
Key Quotes
“Likely significant lowering of inflation forecasts suggests the window for BOJ policy normalization is now closing. However, the meeting is an opportunity for the BOJ to consider feasible measures to alleviate negative side effects, as it likely admits the economy needs a more prolonged period of monetary easing.”
“Although very unlikely, in our view, the Bank could consider changing its 10yr yield target as necessary to ease side effects. Other policy measures outside the monetary policy toolkit to boost JGB market volatility and trading volumes may also be considered.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops to 1.0550 ahead of PMIs, Powell
EUR/USD is in the red near 1.0550, having broken the Asian consolidation to the downside in the European session on Monday. The pair is weighed by a buoyant US Dollar amid higher US Treasury bond yields and a cautious mood. US ISM PMI and Powell's speech eyed.
GBP/USD struggles below 1.2200, awaits central banks' speakers
GBP/USD is trading below 1.2200, struggling to gain any meaningful traction in the European trading on Monday. The risk-on impulse is seen undermining the safe-haven USD and lending support to the major. US PMI, BoE and Fed speeches awaited.
Gold price consolidates near multi-month low, awaits US ISM PMI and Fed Chair Powell’s speech
Gold price continues losing ground for the sixth straight day and drops to a near seven-month low. Bets for further policy tightening by the Fed turn out to be a key factor weighing on the “XAU/USD”.
Week ahead: Fed speech and NFP likely to dictate crypto market moves this week
With the start of 2023’s fourth quarter, things are finally getting interesting in crypto. While the next 12 weeks are extremely important, let’s start by focusing on what to expect this week.
ISM Manufacturing PMI Preview: Worst for US factory activity could be over
The ISM will publish the United States September Manufacturing PMI today. The index is expected to have ticked modestly higher to 47.7 from its previous monthly reading of 47.6.