The Bank of Japan statement is on Thursday 28 October 2019
Earlier prevews here:
- Next week brings the FOMC and BOJ meetings - forecast range for USD/JPY
- BOJ reportedly said to mull refraining from extra stimulus at next week's meeting
- Another piece suggesting the BOJ will leave policy unchanged next week
ING comment on the yen and BOJ:
- If anything can rescue the falling Japanese currency, it's unlikely to be the Bank of Japan,
- The improving global backdrop left markets undecided on whether Governor Kuroda will push rates into deeper negative territory, and the implied probability of a cut is currently around 65%. However, our economists suspect the consumption tax hike this month worsens an already battered economic outlook in Japan, which more than warrants a 10bp rate cut.
- When adding a probable downgrade in the BoJ growth and inflation forecast, the bearish momentum on the JPY seems unlikely to fade next week. We see JPY weakness mostly channelled via the activity currencies, while a Fed cut and possibly weaker-than-expected US payrolls may keep USD/JPY upside somewhat capped
