Bank of America: The market is following clues from the Bank of Japan regarding a possible interest rate hike in June or July this week.
Bank of America Global Research forex strategists pointed out that the market is focused on whether the Bank of Japan will provide any signals regarding future interest rate hikes in this week's meeting. Trump's tariffs have increased policy uncertainty, with expectations that the Bank of Japan's final interest rate will be slightly lower than expected. Speculators are holding record high positions in yen, and USD/JPY is expected to have a rebound trend.