Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Bank of Japan Poised for Historic Rate Hike as Inflation Pressures Persist 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Canada Stocks Steady as Markets Await Fed and BoC Decisions 
RBA Holds Rates but Warns of Rising Inflation Pressures 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
USDJPY was a notable beneficiary from Yellen's policy musings and renewed speculative enthusiasm to own the cross as the FED and BoJ meetings have prevented the cross from retracing in line with the rest of the dollar complex.
The yen backed away from one-week lows against the dollar on Wednesday amid doubts that possible further easing by the Bank of Japan would cause a significant downside for the currency.
While in some senses understandable, speculative demand for USD/JPY seems at odds with the relative performance of the US and Japanese bond markets whereby 10Y JGB yields have pushed to their highest levels since March and the spread to UST has remained closed to the lows for the year.
USDJPY is trading at 102.810, up 0.23% after rising as high as 103.35 earlier, the most since September 6.
So while the market is happy to buy USD/JPY as a positively convex play on the BoJ meeting, the result of such demand is that USD/JPY is now 2% expensive compared to the 10Y rate spread. Hold a USD/JPY put fly (100x98x96 in 1x2x1 notional) with 1w expiry.
