Trade The World
JPY: Sticky core inflation keeps an October BoJ hike in play – ING
By FXStreet Insights Team
Date Published: 22 Aug 2025 | Date Modified: 22 Aug 2025
POPULAR ARTICLES
USD/JPY to be back pressing 146.00 ahead of the Fed meeting
Core Japanese inflation continuing to run at 3.4% YoY suggests the Bank of Japan will hike rates in October, ING's FX analyst Chris Turner notes.
USD/JPY to be back pressing 146.00 ahead of the Fed meeting
"A 25bp hike in October is currently priced with a 42% probability. The BoJ may also be interested in hiking rates in order to stabilise the long end of the JGB market, where 30-year yields overnight hit the highest levels in over a quarter of a century. (The steeper yield curve is good news for Japanese banks, however, where the Topix banks index is up 23% year-to-date)."
"Given that our call is that the Fed will restart its easing cycle in September after all, it looks like the current run-up in USD/JPY will not last. We see gains petering out in the 148.75/149.10 area and would expect USD/JPY to be back pressing 146.00 ahead of the Fed meeting in September."
Acuity Trading
Acuity Trading is a London-based fintech company founded in 2013 that specializes in AI-powered alternative data and sentiment analysis for trading and investments. They revolutionized the online trading experience by introducing visual news and sentiment tools, and today they continue to lead the fintech market with alpha-generating alternative data and highly engaging trading tools using the latest AI research and technology.
Read More
