Markets Eye BoJ Governor Ueda Speech as Traders Weigh October Rate Hike Prospects

Traders are closely watching Bank of Japan Governor Kazuo Ueda's scheduled speech in Tokyo on Tuesday for signals on whether policymakers will deliver another interest rate hike in October. Markets currently price in about a 25% probability of a consecutive increase following September's rate hike to 1.25%, the highest level in 31 years. Recent central bank signals have been mixed, as the September summary of opinions showed caution against rushing further adjustments. Meanwhile, remarks from Deputy Governor Shinichi Uchida recently pushed USD/JPY down to 157.5 before the pair recovered near 158.