Ueda Bank of Japan Governor mentions potential additional rate hike and hawkish remarks.

【7/31Market Overview

During Tokyo time, the USD/JPY moved nervously, briefly rising to153.26yen, then retreating to the mid-152s after the announcement of the Bank of Japan policy meeting results,152yen level. After news that the BOJ would raise the policy rate by0.25%, it fell to151.59yen, then quickly153.88yen surged. In the late Tokyo session, Governor Ueda’s usual press conference hinted at the possibility of further hikes, leading to broad expectations of a hawkish stance and yen buying. After the BOJ’s rate hike announcement, when the price fell below151.59yen, it dropped to150.63yen.NYtime,7月ADP雇用統計 (ADP employment data)4－6月期米雇用コスト指数was weaker than expected, fueling a dollar sell-off and sending USD/JPY to149.62yen.

FOMCkept policy rate at5.25－5.50% as expected. Fed Chair Powell said in the press conference thattheFOMC“is getting closer to cutting rates,9月FOMCcould consider cuts in September149.60, which pushed USD/JPY down toyen.