-
Yen Bulls Retreat as Fed, BOJ Dim Hopes of Quick Rate Gap Cut
Traders are trimming their bets on a yen rally after policy meetings from the Federal Reserve and Bank of Japan cast doubts on how quickly the rate differentials between the US and Japan may narrow. Prior to the back-to-back meetings last week, strategists were betting that 2025 would be the year for the yen. But the market is now feeling less optimistic on the yen’s outlook after BOJ Governor Kazuo Ueda opened up the possibility of waiting longer for the next hike, while the Fed signaled a slowdown in the pace of monetary easing next year. Options metrics suggest that traders were the least bullish on the yen in a ... (full story)