Currency Traders Prepare for More Turmoil Ahead of Fed, BOJ Meetings
- Yen retreats from biggest rally since '13 as haven demand ebbs
- Central-bank policy is poised to determine market direction
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For currency traders who’ve been battered by increased volatility, next week may turn out to be the moment of truth.
The yen, a traditional haven, retreated from the biggest two-week rally since mid-2013 on speculation the Bank of Japan will increase stimulus on Jan. 28-29 to revive inflation. The dollar strengthened for a fourth week before the Federal Reserve meets Jan. 26-27 to consider follow-on policy after raising interest rates last month for the first time in almost a decade.