 Yen continues to dominate the forex markets today, with speculation heating up ahead of next week's BoJ meeting. According to a Reuters report, unnamed sources have confirmed that a rate hike will be debated at the meeting. However, the decision is expected to be a "close call," described as a "judgment call" on whether to "act now or later this year." It is also believed that BoJ will unveil a plan to roughly halve its bond purchases in the coming years, continuing its steady withdrawal from massive monetary stimulus. Meanwhile, Euro is under pressure following disappointing PMI data, which showed significant deterioration in the manufacturing sector while services growth remained moderate only. This data should justify a September ECB rate cut, although inflation data might complicate further cuts beyond that. On the other hand, Sterling is supported by solid PMI figures, bolstering the stance of BoE hawks against a rate cut in August... |
