Due to the many central bank meetings, once again the key question this week is: who is doing most? In the opinion of economists at Commerbznka, it is totally clear who is going to do the least or take the most insignificant action, the Bank of Japan (BoJ). Thus, USD/JPY is set to test the 150 level.

Yen to be the weakest currency this week

“The BoJ will continue to stick to its expansionary monetary policy and not send out any signals pointing towards normalisation. On the contrary, the prospect of weaker growth for the global economy and the fact that the inflation rates might possibly have exceeded their peaks over the coming months might confirm the BoJ in its approach. That is also why I see the yen to be the weakest currency this week.”

“I can imagine very well that USD/JPY will be aiming for the 150 mark over the course of the week, above all if the Fed were to remain extremely restrictive again.”