✅ Market Cautious Ahead of FOMC, BOJ, and ECB—USD/JPY Fluctuates Around the Upper 151 Range
💹 FX Market: Calm Before the Triple Central Bank Week
In tonight’s New York session, the U.S. Federal Reserve (FOMC) will announce its policy rate.
Tomorrow, both the Bank of Japan (BOJ) and the European Central Bank (ECB) are also set to release their meeting results, marking what the market calls a “Triple Central Bank Week.”
Market expectations:
-
FRB: 0.25% rate cut
-
BOJ & ECB: Expected to keep rates unchanged
While no major policy surprise is anticipated, traders are focusing closely on the press conferences from each central bank’s leader.
The biggest spotlight is on Fed Chair Powell’s comments regarding the pace of rate cuts in 2026.
Adding to the intrigue, President Trump stated he will appoint the next Fed Chair by the end of the year, sparking speculation about a more dovish policy stance ahead.
🏦 Equities & Risk Sentiment: Supported by U.S. Stock Gains and U.S.-Japan Cooperation
U.S. equities continue to trade near record highs ahead of the FOMC,
while optimism over a potential U.S.-China summit is supporting investor sentiment.
In Japan, the U.S.-Japan leaders’ meeting reaffirmed cooperation on economic security and corporate investment, easing political risks and pushing Japanese equities higher amid continued yen weakness.
💴 USD/JPY: Range-Bound Near 151.85
In the FX market, USD/JPY remains range-bound around 151.85 (the 10-day moving average).
Profit-taking tends to emerge above 153.00,
while strong buying interest prevents dips below 150.00—
resulting in a directionless “back-and-forth” market.
Tonight’s U.S. Consumer Confidence Index (forecast: 93.4) could serve as a short-term catalyst before the central bank events.
🌍 Upcoming Key Events
| Time | Event | Focus |
|---|---|---|
| 🇺🇸 Tonight | FOMC rate decision & Powell press conference | 0.25% rate cut expected; tone of outlook in focus |
| 🇯🇵 Tomorrow | BOJ policy meeting & Ueda press conference | Likely hold; will BOJ maintain its yen-weak stance? |
| 🇪🇺 Tomorrow | ECB meeting & Lagarde press conference | Expected hold; watch for dovish tone |
| 🇨🇦 Tonight | Bank of Canada rate decision | 0.25% rate cut anticipated |
| 🇬🇧 | UK Money Supply & Consumer Credit | Limited GBP reaction expected |
| 🇺🇸 | Pending Home Sales & MBA Mortgage Applications | Signs of economic slowdown in focus |
💱 London Session Overview
London trading opened quietly as markets await key events.
U.S. Treasury yields edged slightly lower, with the 10-year yield steady around 3.98%.
📊 Major Currency Rates (London Session)
| Pair | Latest | Comment |
|---|---|---|
| USD/JPY | 152.24 | Range-bound ahead of FOMC |
| EUR/USD | 1.1646 | Holding firm as dollar buying eases |
| GBP/USD | 1.3217 | Soft tone; limited rebound |
| U.S. 10yr Yield | 3.98% | Slight dip, stable overall |
✅ Summary
Ahead of the three major central bank announcements, FX markets are in wait-and-see mode, with position adjustments dominating flows.
USD/JPY is fluctuating around 151.85 (10-day MA) in a tight range.
If the Fed strikes a dovish tone, the dollar may weaken and the yen strengthen;
if the BOJ remains cautious, yen weakness could resume.
Expect higher volatility from tonight through tomorrow as policy meetings unfold.
