BOA Strategist: Hawkish Rate Hike from BOJ Next Week Could Support Yen

According to Bank of America's FX strategist Shusuke Yamada, if the Bank of Japan adopts a hawkish stance to hike rates at next week's meeting (around June 16-17), it is expected to provide support for the yen. The market has already priced in the rate hike expectation. Current market pricing shows approximately 50% probability of another rate hike at the October meeting; if market pricing for an October hike rises above 60% and pricing for a March meeting hike exceeds 50%, it would likely be interpreted as a "hawkish" stance. Market focus will be on the BOJ's forward guidance on the future policy rate path.
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