Yen Not Finding Lasting Support Despite BoJ Hike Bets, ING Says
ING’s Chris Turner notes that Japanese money markets have moved sharply, but the yen is not holding gains even as markets price a likely Bank of Japan hike in September.
USDJPY
Japanese money markets have seen sharp moves, but the yen is not finding lasting support, according to ING's Chris Turner. Markets now assign a high probability to a Bank of Japan rate hike in September, which has narrowed US–Japan swap differentials.
Despite that repricing, USD/JPY remains elevated as carry trades continue to dominate. Turner's comments suggest the BoJ policy story is having little effect on the currency for now.
Source: FXStreet Forex News