UBS: It is unlikely that the yen will rise further significantly due to the Intrerest Rate outlook

On August 23, Jinshi data, UBS Global Wealth Management stated in a report that the Bank of Japan is unlikely to raise interest rates in the near future, and the expectation of a rate cut by the Federal Reserve has been factored in, limiting the further strengthening of the yen. “We believe that the Bank of Japan is not eager to raise interest rates in the coming months, which weakens the possibility of a new round of yen strength,” UBS analysts said. In addition, speculative yen positions have slightly turned net long, and the expectation of a rate cut by the Federal Reserve has been fully priced in. The USD/JPY should remain fairly stable in the range of 145-150 in the near term.