According to ChainCatcher, the market speculates that the Bank of Japan is expected to raise interest rates this month, but participants continue to bet that the yen will weaken further.
Traders at Bank of America, Nomura Holdings, and Royal Bank of Canada indicate that investors' positions reflect this bet. Citigroup's 'misery index' for the yen remains deeply in negative territory, showing that negative sentiment towards the yen persists in the market.
Even though Bank of Japan Governor Kazuo Ueda hinted that interest rates may be raised soon, and the Bank of Japan is reportedly preparing to increase rates in December if the economy or financial markets are not significantly impacted, investors still maintain a bearish outlook on the yen. The reason is that even if the Bank of Japan takes action, Japan's yields are still expected to be significantly lower than those in the United States, which is more advantageous for the dollar.
The head of G-10 currency trading for Bank of America in the Asia-Pacific region, Ivan Stamenovich, stated: "Positions still tend to bet on the US dollar rising against the Japanese yen before the end of the year, unless the Bank of Japan brings about a real surprise, this trend will not change." He added that Ueda's hawkish remarks sparked discussions about this currency pair, but the market sentiment has not undergone a substantial shift. (Jin Shi)