CoinVoice has recently learned that the market speculates that the Bank of Japan is likely to raise interest rates this month, but participants still bet that the yen will continue to weaken.
Traders from Bank of America, Nomura Holdings, and Royal Bank of Canada indicate that investor positions reflect this bet. Citigroup's 'pain 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 raise 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 favorable for the dollar.
The head of G-10 currency trading at Bank of America in the Asia-Pacific region, Ivan Stamenovich, stated: "Positions still lean towards betting on the USD/JPY continuing to rise before the end of the year, unless the Bank of Japan brings a real surprise, this trend will not change." He added that Ueda's hawkish remarks sparked discussions about this currency pair, but market sentiment has not undergone any substantial change. (Jin Shi)[Original link]
