BOJ opens two-day IMES conference on monetary policy, global central bank cast: Fed, RBA

Opening Remarks by Governor UEDA at the 2026 BOJ-IMES Conference

Economic and event calendar in Asia 27 May 2026 - BoJ, Fed, Aussie CPI, RBNZ rate decision

Focus on FOMC turns to the BoJ and BoE in final full week of trading

The desk anticipates increased volatility in the FX markets as the focus shifts from the recent FOMC meeting to upcoming decisions from the BoJ and BoE. Per the full note from MUFG EMEA, the final meeting of the year for the FOMC has set the stage for the US dollar's trajectory, particularly as traders reassess their positions ahead of key central bank announcements. The potential for a rate hike from the BoJ could restore confidence in the JGB market, which has implications for USD/JPY dynamics. With no major calendar events in the next 30 days, market participants will be closely monitoring these central bank meetings for directional cues.

What are the main takeaways for the FX market from this week's central bank updates?

The desk anticipates that the FX market will remain sensitive to central bank communications in light of recent updates from the Fed, BoJ, and BoE. Heightened uncertainty surrounding President Trump's policy plans is likely to influence these communications, as noted by Lee Hardman and Seiko Kataoka-Fisher in their analysis [source]. The Fed's cautious stance, coupled with the BoJ's ongoing accommodative policy, suggests a divergence in monetary policy that could impact currency valuations significantly. Currently, our consensus target for EUR/USD sits at 1.075, reflecting a balanced view amid these developments.