The market at the beginning of the week is expected to be difficult to move ahead of the announcement of the results of the US FOMC on Wednesday (before dawn on Thursday in Japan time). In the midst of this, the speculation that the pace of US interest rate hikes will slow down in the future is creating a favorable mood in the stock market. With the dollar market taking a wait-and-see attitude, there is a possibility that yen-selling pressure from risk appetite will be pushed to the fore.
The dollar/yen exchange rate fluctuates around 148 yen, but the price movement is relatively firm, with some exceeding last weekend’s high. The cross yen is also moving in the direction of yen depreciation. At the Bank of Japan Monetary Policy Meeting held last weekend, Bank of Japan Governor Kuroda once again indicated his intention to continue easing. In the short term, these materials are likely to attract attention. However, there is a strong possibility that the yen’s depreciation will move cautiously due to concerns about the Bank of Japan’s yen-buying intervention.
The beginning of the week started with the yen depreciating against the dollar. But I don’t think I can continue like this. Waiting for the timing of USD reversal, we are thinking about entering the US dollar selling direction.
In addition, today’s preliminary October euro zone consumer price index rose by 10.7% year-on-year from the previous September preliminary report of +10.0%. Since it exceeds the market forecast of +10.3%, I have been buying EURCHF from the perspective of buying the euro.
