EUR/USD 1.17439
-0.091%
Gold 4950.77
0.301%
Oil 59.782
0.331%
USD/JPY 158.690
0.171%
GBP/USD 1.34900
-0.089%
GBP/JPY 214.079
0.099%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
January 23 - According to the Guangdong Branch of the Peoples Bank of China, by 2025, Guangdongs cross-border RMB settlement volume will rank among the top three provinces in China, with a year-on-year increase of 21.5%, accounting for more than 50% of total cross-border receipts and payments in both local and foreign currencies, both of which are record highs.On January 23, Tencent Group released an anti-fraud report, stating that throughout 2025, Tencents anti-fraud investigation department discovered and investigated more than 70 cases of violations of Tencents "red lines," and more than 90 people were dismissed for violating Tencents "red lines." Among them, more than 20 people were transferred to the public security organs for suspected crimes, and more than 30 external personnel involved in the cases were also arrested by the public security organs.Bank of Japan: Regarding the US economy, it is necessary to pay attention to factors such as the impact of tariffs on employment and income formation through deteriorating corporate profits.On January 23, the Bank of Japan (BOJ) kept its benchmark interest rate unchanged to observe the impact of last months rate hike on the economy. The statement said the BOJ kept the benchmark interest rate at 0.75% on Friday, consistent with the forecasts of all economists surveyed. Borrowing costs are at their highest level in 30 years. The BOJ will monitor its impact on prices and the economy and consider the timing of its next move accordingly. Just days earlier, Japanese Prime Minister Sanae Takaichi pledged to suspend the consumption tax on food, a move that triggered turmoil in financial markets. BOJ Governor Kazuo Ueda will elaborate on the reasons for the banks decision, possible interest rate trends, and the inflation outlook at a press conference this afternoon. His comments could influence the yens exchange rate, and any comments he makes about the recent surge in long-term yields will be closely watched.Bank of Japan: The output gap is expected to improve along with the trend and widen moderately.

Even as the BoJ vs. Fed Difference Remains in the Spotlight, USD/JPY Tracks Below 134.00 on Lackluster Yields

Alina Haynes

Apr 17, 2023 14:02

USD:JPY.png 

 

As Monday begins in Tokyo, USD/JPY falls from its intraday high and stabilizes around 133.80. As a consequence, the Yen pair is unable to extend its previous day's gains due to lax market conditions preceding this week's key data/events. In addition to a paucity of significant data or events, USD/JPY traders have recently struggled with inconsistent triggers and sluggish returns.

 

The previous day, USD/JPY reached its highest level in a week as primarily positive US data dampened expectations for a policy shift and rate cut by the Federal Reserve (Fed) in 2023. Despite this, US retail sales decreased by 1.0% in March compared to the predicted -0.4% decline and February's -0.2% decline. As opposed to the 0.2% market consensus and previous reading, Industrial Production increased by 0.4% in the month in question. The preliminary result of the University of Michigan's (UoM) Consumer Confidence Index for April, which increased to 63.5 from 62.0 analysts' expectations and previous readings, was also encouraging. In addition, inflation forecasts for the next year increased from 3.6% in March to 4.6% in April, while inflation forecasts for the next five years decreased by 2.9% during the same month.

 

Previously, the USD/JPY pair increased due to hawkish Fed discussions. In an interview with Reuters on Friday, Raphael Bostic, president of the Atlanta Federal Reserve (Fed), stated that "recent developments are consistent with one more rate hike." According to Reuters, Fed Governor Christopher Waller discussed this topic and stated that additional rate hikes are necessary because the Fed has not made significant progress toward its inflation objective. In an interview with CNBC on Friday, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, stated that he still needs to examine the statistics. The lawmaker said, "However, let's keep in mind that we've raised a lot of money; some of the delay may be reflected in today's retail sales number."

 

In contrast, the USD/JPY pair was able to maintain its strength due to the new Governor of the Bank of Japan (BoJ), Kazuo Ueda, who supports the Japanese central bank's easy-money policy.

 

Recent geopolitical tensions between China and the United States over Taiwan, as well as China's desire to collaborate with Russia to enhance regional and global security, have weighed on the USD/JPY pair and agitated the market.

 

S&P 500 Futures struggle to find a clear direction amidst these wagers following Wall Street's pessimistic close, as bond yields remain neutral despite weekly gains.

 

The preliminary readings of the US PMIs for April and the Japanese National Consumer Price Index (CPI) for March will be crucial to monitor going forward. The previously mentioned risk factors and central banker comments are also significant.


Suggestion