Lee Hardman, Senior Currency Analyst, and Abdul-Ahad Lockhart, Currency Analyst, discuss the fallout for the FX market from this week’s Fed, BoJ and BoE policy meetings. How have the latest developments impacted the outlook for USD/JPY?

What’s next for USD/JPY after this week’s sharp correction lower?

The MUFG Global Markets Podcast

Welcome to the MUFG Global Markets FX Week Ahead Podcast with Derek Halpenny, Senior Currency Analyst at MUFG. It's Friday 31st of July 2026 and joining Lee to pose some questions on the financial market themes for the week ahead is Abdul Ahad Lockhart, Currency Analyst at MUFG.

This podcast is only intended for professional investors in jurisdictions in which its use is permitted under applicable laws, rules and regulations. It has been produced for information purposes only and should not be construed as investment research or advice. MUFG EMEA disclaimers and disclosures can be located on our website.

Hi Lee, I am Abdul Ahad. It has been an important week for central bank policy updates with the Fed, BOE and BOJ all holding meetings. The dollar has lost upward momentum since the Fed's policy update. Why do you think we have seen such a turnaround? Yeah, it's a good question. Like initially I think the market was more nervous than normal that the Fed could have hiked rates this week but obviously that didn't happen.

So I think there was some initial release there that the Fed left rates on hold and that definitely initially weakened the dollar. On top of that as well, I think there was an expectation going into the meeting that even if the Fed kept rates on hold, that we would see hawkish comments from Kevin Warsh in the press conference. And I think the comments on the whole were definitely kind of less hawkish than we and many people had feared,

even though we did see three regional Fed presidents dissenting in favor of a rate hike this week. I think overall though, if you look at his comments, there was still a lack of guidance really over future policy.

What’s next for USD/JPY after this week’s sharp correction lower?

Read the full transcript

The candid version is on a podcast,
not the earnings call.

What’s next for USD/JPY after this week’s sharp correction lower?

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.