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Volvo Cars: 2026 will be a challenging year for the automotive industry, with the overall premium market expected to shrink.Royal Bank of Canada: Lowered its price target for Qualcomm (QCOM.O) to $150 from $180.1. Goldman Sachs: Expects interest rates to remain unchanged. In the current "Goldilocks" economic environment of trending growth, low unemployment, and inflation near target, maintaining a neutral monetary policy is undoubtedly a reasonable choice. 2. ING: Expects interest rates to remain unchanged. A stronger euro may restart discussions about the possibility of a rate cut. If the euro strengthens further, the possibility of a rate cut in March will increase. Low inflation adds leverage to dovish discussions. 3. ABN AMRO: Expects interest rates to remain unchanged. The committee tends to ignore the situation where the inflation rate is below the target level. Lagarde is expected to reiterate that no specific exchange rate target is set, and that the committee is prepared to act at any time if the impact of exchange rates becomes significant. 4. Scotiabank: Expects interest rates to remain unchanged, maintaining a neutral communication stance. Recent economic data, including the services PMI and CPI, have met expectations and have not given ECB policymakers much incentive to take action. 5. Nordea: Expects interest rates to remain unchanged, possibly until the second half of 2027, as overall price pressures remain anchored within the target range, the economy is resilient, and recent foreign exchange fluctuations are unlikely to cause excessive concern. 6. Dutch Cooperation: Expects to keep interest rates unchanged, with two rate hikes in March and June 2027. Although euro appreciation may trigger verbal intervention, the euro still has considerable room for appreciation before triggering a rate cut. 7. Societe Generale: Expects to keep interest rates unchanged, as core inflation remains above 2% and economic growth is strong. If the recent rise in oil prices continues, offsetting the deflationary effects of a stronger euro, it will reduce the urgency to adjust policy. 8. UniCredit: Expects to keep interest rates unchanged until 2027, as the economy has shown resilience. A stronger euro is unlikely to pose a significant threat to its baseline scenario. Maintaining a data-dependent and meeting-by-meeting decision-making approach is crucial for flexible action. 9. Capital Economics: Expects to keep interest rates unchanged and not change policy guidance. Inflation is likely to fall below target in the second half of the year, prompting a rate cut before the end of the year. Direct intervention is unlikely unless the euro appreciates more rapidly and significantly. 10. Amundi: Expects to keep policy unchanged. The risk of lower-than-expected inflation at the beginning of the year reinforces the view that the ECB may cut interest rates again to 1.75% later this year. 11. Berenberg: Expects to keep interest rates unchanged; current economic growth is robust and further rate cuts are not yet necessary. However, a stronger euro increases downside risks to inflation, potentially forcing a downward revision of inflation expectations and increasing the likelihood of further rate cuts in the future. 12. HSBC: Expects to remain on hold for an extended period, likely maintaining a dovish stance and possibly hinting at a willingness to act if necessary. This could put pressure on the euro/pound pair, and comments regarding a stronger euro are worth watching. 13. Deutsche Bank: Expects to keep interest rates unchanged throughout the year, with a rate hike expected by mid-2027. Further rate cuts are possible this year due to potentially lower-than-target inflation and a stronger euro, but action will only be taken if there are significant changes in the macroeconomy. 14. Morgan Stanley: Expects to keep interest rates unchanged and maintain its policy message. Policy discussions are likely to focus primarily on downside risks, with particular attention to increased trade uncertainty, economic growth momentum, and exchange rate factors.S&P Global Ratings: Japanese companies can withstand rising interest rates.February 5th - It is reported that Alibaba Group has unified the general name and core brand for AI under the name "Qianwen" (千问). The "Qianwen Big Model" (Qwen) encompasses both basic big models and specialized domain models. This move is to avoid confusion caused by the previous use of multiple names such as Qianwen, Tongyi Qianwen, and Qwen. After unification, the Alibaba big model brand will be "Qianwen Big Model" in Chinese and "Qwen" in English. Tongyi Labs is the organizational name of the Tongyi Labs under Alibaba Group.

The USD/JPY crosses the 135.00 mark as the DXY rises ahead of US inflation

Daniel Rogers

Aug 10, 2022 11:32

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The USD/JPY pair is climbing northward during the Asian session in an attempt to retake its two-week high at 135.58. The asset's price turned positive on Monday as a result of the abundance of bids that occurred near 134.50. The USD/JPY pair's two-day consolidated activity shows that market participants are anxiously awaiting the release of the US Consumer Price Index (CPI).

 

Investors expect a decrease in price pressures this time, thus the release of the US inflation report is crucial. The investment community is aware that the crisis between Russia and Ukraine sharply increased oil prices, which continued to be essential to pressures on global costs.

 

A more than 11% drop in oil prices in July contributed to the black gold's continued sluggishness and lowered inflation expectations. The market anticipates that the inflation rate will decrease from 9.1% to 8.7%. The core CPI, which does not include food and oil, is anticipated to increase to 6.1% from the previously announced 5.9%. It appears that the demand for durable goods is rapidly increasing again. The US dollar index (DXY) is currently aiming to surpass the 106.40 immediate barrier.

 

The yen bulls are circling Tokyo as a result of Japan's government reorganization. Finance Minister Shunichi Suzuki will probably remain in the cabinet after this week's reorganization by Japanese Prime Minister Fumio Kishida. All eyes will now be on the Japanese government's efforts to raise the labor cost index, which is essential for keeping inflation over 2%.