BoJ to stay on the sidelines this week – Commerzbank

The Bank of Japan will wrap up the central bank week with its meeting on Friday morning, notes Commerzbank currency analyst Volkmar Baur.

JPY has a good chance of falling below 140

“Recently, their decisions have been quite erratic. In June, he was expected to be a hawk, but then disappointed. In July, nothing was expected and they surprised with a rate hike. For Friday, the market and economists agree: no one expects another move from the BoJ, even though various members of the BoJ board have recently emphasized relentlessly that they want to keep raising rates.”

“The market turmoil since early August after the last rate hike is still too fresh in people’s minds. Therefore, I expect the BoJ to stay on the sidelines this week, in part because the Fed will do most of the work on USD/JPY, and the JPY has a good chance of falling below 140 per USD this week. Even without a rate hike from the BoJ.”