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JPY slips as Ueda strikes dovish tone – BBH

The Japanese Yen (JPY) is under pressure after BOJ Governor Ueda downplayed risks of falling behind the inflation curve, signaling no urgency to tighten. Still, markets assign 56% odds to a hike at the October 29–30 meeting, keeping the medium-term outlook supportive for JPY, BBH FX analysts report, BBH FX analysts report.

BOJ Governor stresses patience on rates

"JPY is underperforming. Bank of Japan (BOJ) Governor Kazuo Ueda stuck to the bank’s long-held guidance of raising rates if the outlook for economic activity and prices will be realized. Ueda added he does not think the possibility of the BOJ falling behind the curve on inflation is high, suggesting he sees little urgency to resume normalizing rates."

"Our base case is for the BOJ to raise rates at the next October 29-30 meeting which bodes well for JPY. The swaps market price-in 56% odds of a rate increase at that meeting."

USD: We'll still see ISM services – ING

Traded volatility is falling across financial markets. Investors have settled into the view that the Fed will likely cut rates twice more this year and probably another 50bp in 2026.
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AUD/USD might test the support at 0.6570 before recovering – UOB Group

Australian Dollar (AUD) could test the support at 0.6570 before recovering; the major support at 0.6545 is not expected to come into view.
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