No interest rate cuts in the U.S.; No rate hikes in Japan?!

10/4Announced9month US employment data significantly exceeded market expectations, causing expectations of substantial US rate cuts by year-end to retreat. Meanwhile, Prime Minister Ishiba stated after meeting with Bank of Japan Governor Ueda (hereafter, BoJ Governor) that “personally, I do not see a situation where additional rate hikes are appropriate at this time,” indicating a stance that rejects the pre-inauguration path of monetary normalization. Looking ahead at the direction of US and Japan monetary policy, we can forecast the dollar-yen exchange rate trends.