BOJ, Fed Meetings to Shape Interest Rate Expectations

Currency traders are keeping a close eye on central bank meetings in Japan and the US this week. Despite low expectations for rate hikes, the tone of their news conferences will shape monetary policy expectations.

The Bank of Japan (BOJ) meeting is set to take place alongside the Federal Reserve's gathering, which has led to increased attention on interest rate trends in the market.

Futoshi Oguri notes that market players are watching whether the yen will soften further against the dollar. This shift in focus comes after market attention was temporarily diverted from interest spread to fiscal policy.