Yen Bulls Retreat as Hopes Fade for Fast Cut in Rate Gap
- Leveraged funds were most bearish on yen since July: CFTC
- Mizuho, Mitsui Sumitomo Insurance recently cut forecasts
The Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
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.