There is some firming up of pricing for a May Bank of Japan rate hike. Previously July was the hot meeting, but May has moved into contention.
Scanning various pieces thereasoning includes:
- BoJ rate hike last week was more hawkish than many expected
- Ueda cited uncertainties that might slow future interest rate hikes, these factors seem to be weakening quickly
- Trump’s policy comments suggest more bluster than substance
- political opposition to further rate hikes is diminishing – consumer inflation elevated, weak yen is inflationary
- March appears be too soon for another hike but May is in contention
This article was written by Eamonn Sheridan at www.forexlive.com. Source