BoJ Rate-Hike Bets Firm, Reinforcing Yen Support
Commerzbank says Japanese government signals have strengthened market expectations for an imminent Bank of Japan rate hike, with September seen as a possible start and October fully priced.
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Commerzbank strategist Volkmar Baur said Japanese government signals have reinforced rather than upended market expectations for an imminent Bank of Japan rate increase.
Market probabilities now favor a hike as early as September. October is seen as fully priced, while traders are also assigning probability to another move in December.
The shifting rate outlook is providing support for the Japanese yen, narrowing the expected policy gap and improving the currency’s near-term appeal.
Source: FXStreet Forex News