Skip to content
Key Takeaways
Yen experienced volatility in a wild week, leaving sentiment fragile
The yen rose 0.4% after dropping 1.6% on Wednesday
Some members of the BOJ called for interest rate increases to at least around 1%
Carry trades involving yen have been unwinding
Swiss franc slightly stronger at 0.859 per dollar after a 1% drop
Dollar index near seven-month low as yen moves sharply
Market expecting Fed to cut rates, currently pricing in 26.5% chance of 25 bps reduction
Focus on upcoming U.S. consumer price inflation report and comments by Fed Chair Jerome Powell in August
Overall, investors should prepare for continued market volatility and economic data developments.
Yen strengthened after a significant decline- Traders are analyzing Japan’s interest rate trajectory
Market sentiment towards the yen is currently uncertain- Yen firms after sharp drop in a volatile week
- BOJ Deputy Governor plays down chance of near-term interest rate hike
- Some BOJ members call for interest rate increases to at least around 1%
Investors uncertain about BOJ’s rate path due to contrasting opinions
Markets remain vulnerable to negative news flows and global uncertainties- Dollar index near seven-month low due to sharp moves in yen
Euro and sterling steady, Swiss franc slightly stronger, Australian and New Zealand dollars stable- Yen firmed after sharp drop, leaving sentiment fragile
- Yen dropped 1.6% after BOJ’s Deputy Governor downplayed near-term hike in interest rates
Global financial markets remain vulnerable to negative news flows and uncertainties with rapid slide in U.S. stocks
Market Volatility and Yen Movement
- Yen experienced volatility in a wild week, leaving sentiment fragile
- Yen strengthened after a significant decline
- Yen firms after sharp drop in a volatile week
- Yen firmed after sharp drop, leaving sentiment fragile
- Yen dropped 1.6% after BOJ’s Deputy Governor downplayed near-term hike in interest rates
BOJ and Interest Rate Discussions
- Some members of the BOJ called for interest rate increases to at least around 1%
- Traders are analyzing Japan’s interest rate trajectory
- Some BOJ members call for interest rate increases to at least around 1%
- BOJ Deputy Governor plays down chance of near-term interest rate hike
- Investors uncertain about BOJ’s rate path due to contrasting opinions
- BOJ’s voyage towards normalizing policy likely to continue despite market volatility
Currency Movements and Global Market Uncertainties
- Carry trades involving yen have been unwinding
- Swiss franc slightly stronger at 0.859 per dollar after a 1% drop
- Dollar index near seven-month low as yen moves sharply
- Dollar index near seven-month low due to sharp moves in yen
- Euro and sterling steady, Swiss franc slightly stronger, Australian and New Zealand dollars stable
- Markets remain vulnerable to negative news flows and global uncertainties
- Overall, investors should prepare for continued market volatility and economic data developments
- Global financial markets remain vulnerable to negative news flows and uncertainties with rapid slide in U.S. stocks
Fed Rate Expectations and Economic Data
- Market expecting Fed to cut rates, currently pricing in 26.5% chance of 25 bps reduction
- Focus on upcoming U.S. consumer price inflation report and comments by Fed Chair Jerome Powell in August