BOJ governor Ueda: We don’t make comments on short-term FX moves

• There is still a month to go until the next policy meeting, there will be more information available by then
• We decide monetary policy meeting by meeting on the basis of information that becomes available up to the meeting itself
• Need to take into account FX movements in forming our economic and inflation outlook, including what’s causing FX changes that are taking place at the moment

He’s not giving anything away just yet and as things stand, traders are quite torn on what they will be doing in December. The OIS market shows that pricing for a 25 bps rate hike is at ~48% odds currently. The remainder ~52% odds are siding with the BOJ not making any change to their policy settings.

This article was written by Justin Low at www.forexlive.com.