EUR/USD 1.16424
-0.144%
Gold 4471.96
-0.133%
Oil 58.223
-0.046%
USD/JPY 157.519
0.421%
GBP/USD 1.34246
-0.116%
GBP/JPY 211.469
0.319%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On January 9th, RJ Gallo, Deputy Chief Investment Officer of Fixed Income at Federated Hermes, stated in a report that at the start of 2026, both real and implied volatility in the US Treasury market has fallen to a four-year low, returning to levels typically seen before the pandemic. Disruptive factors over the past four years include inflation surging to multi-decade highs; the Federal Reserves rapid tightening of policy to suppress inflation; the Silicon Valley banking crisis; Trumps tariff announcements; and the Feds eventual easing of monetary policy amid slowing job growth. He stated, "So far, recent events have not matched the drivers of these economic uncertainties, which is good news for us."Frances November industrial production figures will be released in ten minutes.January 9th - German industrial output unexpectedly rose for the third consecutive month, further suggesting that Europes largest economy may be on the verge of recovery. Data from the German Federal Statistical Office showed that industrial output rose 0.8% month-on-month in November, exceeding market expectations, with Octobers revised increase at 2%. This growth was primarily driven by Germanys crucial automotive industry, while machinery-related companies also saw growth, helping to offset a decline in energy production. The data also showed an unexpectedly large jump in factory orders, which analysts believe is the beginning of the effects of the fiscal stimulus measures prepared by the Merz government. The slump in traditional growth drivers has led to significant job losses in German manufacturing. Now, the recovery is expected to be driven by domestic demand, and this weeks data seems to confirm this.The chart shows that at 23:00 Beijing time on January 9th, there will be large foreign exchange options contracts for EUR/USD, USD/JPY, etc. There are 3 contracts with strike prices exceeding 1 billion. Please manage your risks.The Ukrainian Foreign Minister stated that Russias repeated claims that Ukraine attacked Putins residence to justify the attack are "absurd."

Following Fed-inspired turbulence, USD/JPY anticipates a major move; US Retail Sales are anticipated

Daniel Rogers

Dec 15, 2022 11:41

 USD:JPY.png

 

Near 135.40, the USD/JPY pair fluctuates violently during the Asian session. By decreasing volatility, the asset cleans up the mess left by Fed policy-induced volatility, clearing the path for future decisive action.

 

As a result of an interest rate deceleration, the Federal Reserve (Fed) shifted to a smaller rate boost, which caused the major currency to swing dramatically between 134.50 and 136.00. Jerome Powell, chairman of the Federal Reserve, announced a rise of 50 basis points (bps) in interest rates, bringing them to 4.25-4.50%.

 

In the interim, the US Dollar Index (DXY) has risen to approximately 103.70. After opening in the red on Wednesday, S&P500 futures have tried a more robust comeback. Indicative of a revival in risk appetite, it appears that investors are dismissing forecasts of higher interest rate peaks and applauding the novel approach of a smaller and slower interest rate hike.

 

Fed Chair Jerome Powell has warned investors that Average Hourly Earnings, which are not decelerating, are the next factor that has the potential to reverse inflation. Consistent gains in income will keep retail demand healthy and will not compel businesses to reduce prices.

 

Thursday's release of U.S. Retail Sales statistics will attract investors' attention moving ahead. Compared to the prior reading of 1.3% growth, the monthly Retail Sales report for November is expected to decline by 0.1%. A decline in retail demand will contribute to the softening of additional inflation statistics.

 

On the Tokyo front, investors predict the Japanese government to implement additional economic stimulus packages in order to encourage economic growth. The Bank of Japan (BOJ) already favors a policy easing strategy to boost inflation, and this is expected to continue until inflation reaches its target of 2%.


Suggestion