EUR/USD
1.16785
-0.076%
Gold
3356.78
0.017%
Oil
67.301
-0.282%
USD/JPY
147.309
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GBP/USD
1.34788
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GBP/JPY
198.560
-0.173%
Real-time News
The Bank of Japan may face political pressure to keep interest rates low for longer as opposition parties that support tax cuts and loose monetary policy are expected to increase their influence after the July 20 Senate election. Polls show that Prime Minister Shigeru Ishibas coalition may lose its majority in the Senate. The ruling bloc, led by the Liberal Democratic Party, is already a minority in the more powerful House of Representatives, so a deadlock between the two houses could give the opposition greater influence in the decision-making process. Some analysts said that if opposition groups put pressure on the Bank of Japan to avoid raising interest rates and the government to cut the consumption tax, it could raise government bond yields and make the Bank of Japans efforts to normalize monetary policy more difficult. Daiju Aoki, chief Japan economist at UBS SuMi Trust Wealth Management, said, "There is a 50% chance that the ruling coalition will lose its majority in the Senate, which may lead to an intensified debate over lowering Japans consumption tax rate, which will arouse concerns about Japans fiscal situation and push up Japans long-term interest rates."The European Union is seeking to deepen trade deals with India and other countries in the Asia-Pacific region in response to U.S. tariffs, a senior EU official said.On July 14, the Royal Bank of Canada said that in the United States, the cost increase caused by the increase in tariffs will eventually be borne by American consumers. However, this part of the cost may be distributed to the entire supply chain, such as transportation companies, wholesalers/manufacturers/retailers, and only a part of it will be transmitted to consumer prices in the end. It is expected that the annual rate of the overall US CPI will rise from 2.4% in May to 2.6% in June, a monthly increase of 0.3%; the core monthly rate is expected to rise by 0.2%, and the annual rate is expected to rise to 2.9%.Nissan Motor Co. may build Honda Motor Co.s pickup trucks at its U.S. plants.South Koreas trade minister: Discussions with the U.S. on cooperation in key industrial sectors have made "significant progress."
