The Bank of Japan statemeheading into the meetings (Fed and BOJ) nt is on Thursday 28 October 2019
Earlier previews here:
- 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
- BOJ meet this week - preview
Goldman Sachs have a look at the meeting and what to expect for the yen, this in brief:
heading into the meetings, Fed and BOJ:
- "We see upside risk to USD/JPY … move might be limited if markets perceive the FOMC as reluctant to ease further going forward, which could dent the recent bout of risk optimism"
- GS expect the Fed to cut, BOJ to remain steady but further extend the time frame for keeping loose policy. BOJ may signal willingness to cut further in the future - if so should be slight further positive for US/yen.
GS add that short USD/JPY still a good play if a risk rally is expected by investors.
