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On September 17th, several major US tech companies announced they would invest over $40 billion to expand the UKs AI infrastructure, a significant boon for the country, coinciding with a state visit from President Trump. Microsoft (MSFT.O) said on Tuesday it would invest $30 billion in UK AI infrastructure and existing operations by 2028, its largest financial commitment yet in the country. Google (GOOG.O) said it would invest approximately $6.8 billion in AI, R&D, and related engineering in the UK over the next two years. Meanwhile, Nvidia (NVDA.O), OpenAI, and British company Nscale are collaborating to build AI infrastructure in the UK to meet OpenAIs computing needs. The project, called "Stargate UK," is expected to be located in northeast England and utilize tens of thousands of Nvidias Grace Blackwell Ultra graphics processing units. Among other investments, AI cloud computing company CoreWeave plans to invest approximately $2.04 billion in AI data center capacity and operations in the UK. Salesforce announced it would invest a further $2 billion in its UK operations by 2030, while BlackRock will pour £500 million into data centers across the UK.On September 17th, local time, it was learned on the 16th that Israels Intelligence and Secret Service (Mossad) deployed 100 foreign agents in Iran at the start of the Israel-Iran conflict in June of this year. Israels Channel 13 reported that day that, according to information disclosed publicly for the first time by the Israeli Mossad, the agency established a "small army" of 100 foreign agents in Iran at the beginning of the Israel-Iran conflict in June of this year. Their mission was to destroy Irans numerous missile launchers and air defense systems at the outset of the conflict. The report said that these agents were well-trained and capable of operating missile systems weighing hundreds of kilograms. These missile systems were smuggled into Iran and used to attack Iranian ballistic missile launchers and air defense missile systems. This was reportedly the largest operation by the Israeli Mossad to date.Nvidia (NVDA.O) will work with the UK to build a national artificial intelligence infrastructure and ecosystem to drive innovation, economic growth and jobs.UK Government: Salesforce announced it will increase investment in its UK operations by $2 billion by 2030.UK Government: Coreweave announces £1.5 billion investment to drive UK AI innovation and growth through sustainable computing.

The dollar against the yen is hovering near a three-year high! Risk sentiment remains weak

Oct 26, 2021 11:05

After testing a three-year high of 114.46 in Asian markets in early trading on Monday (October 18), USD/JPY consolidated above 114.00, and the bulls paused before resuming the upward trend.


The exchange rate closely follows the trend of U.S. Treasury yields, and the benchmark 10-year Treasury bond yields are also trending. Yields rose again and pushed up the currency pair to the multi-year top it hit last Friday.

However, the 10-year Treasury bond yield seems to be unable to break through 1.60% without follow-up buying, limiting the exchange rate to a 3-year high.

The decline in the exchange rate is still limited by the strengthening of the US dollar, because the market risk tone remains weak.

Concerns about the slowdown in global economic growth have resurfaced within the day, and the surge in oil prices has weakened market sentiment and supported the dollar bulls.

At the same time, Japanese Prime Minister Fumio Kishida said that he has no plans to change the sales tax. Since there are relatively few data in the United States, the exchange rate may be affected by broader market sentiment and yield price movements.

However, as the Fed’s hawkish expectations continue to rise, the Fed’s speech will attract more attention.

USD/JPY technical outlook


FXStreet analyst Christian Borjon Valencia explained, “The first resistance was at 114.54, the high of October 4, 2018, which is a key level. The exchange rate has been blocked four times in four years. If it breaks through this level, the exchange rate will rise further. Clear the obstacles and point to key resistance levels, such as the high of 115.37 on January 27, 2017, and then the high of 117.52 on January 9, 2017. On the other hand, if it breaks 114, it will open the door to decline, and the current RSI will exceed purchase. "

(Daily chart of USD/JPY)

At GMT+8 16:36, the USD/JPY traded at 114.35.