EUR/USD 1.16040
-0.028%
Gold 4161.49
0.466%
Oil 58.294
0.167%
USD/JPY 151.741
-0.040%
GBP/USD 1.33220
0.020%
GBP/JPY 202.153
-0.007%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
New Zealand Reserve Bank Chief Economist Conway: Artificial intelligence investment and climate change may put upward pressure on the neutral interest rate.New Zealand Reserve Bank Chief Economist Conway: Interest rates are at the lower limit of the neutral range at 2.5%, but we are still groping.New Zealand Reserve Bank Chief Economist Conway: The neutral interest rate is always fluctuating.1. The three major U.S. stock indices closed mixed, with the Dow Jones Industrial Average up 0.44%, the S&P 500 down 0.16%, and the Nasdaq down 0.76%. Walmart rose nearly 5%, with Caterpillar rising over 4%, leading the Dow higher. The Wind SEV index fell 1.26%, with Nvidia down over 4% and Amazon down over 1%. Most Chinese concept stocks fell, with Zai Lab down nearly 6% and GDS down over 5%. 2. The three major European stock indices closed mixed, with Germanys DAX down 0.62%, Frances CAC 40 down 0.15%, and the U.K.s FTSE 100 up 0.1%. 3. U.S. Treasury yields fell across the board, with the 2-year Treasury yield down 3.54 basis points to 3.489%, the 3-year Treasury yield down 4.70 basis points to 3.486%, the 5-year Treasury yield down 4.17 basis points to 3.606%, the 10-year Treasury yield down 2.50 basis points to 4.028%, and the 30-year Treasury yield down 0.67 basis points to 4.629%. 4. International precious metals futures closed mixed, with COMEX gold futures up 0.64% to $4,159.60 per ounce and COMEX silver futures down 0.17% to $50.35 per ounce. Federal Reserve officials indicated that monetary policy will remain moderately tight. The U.S. government shutdown exacerbated market volatility, and the IMF warned that tariffs are weakening the global growth outlook. 5. The International Energy Agency released a bearish forecast, with the main WTI crude oil contract at $58.59 per barrel; the main Brent crude oil contract fell 1.64% to $62.28 per barrel. 6. Base metal prices fell across the board in London: LME zinc futures fell 2.23% to $2,953.50 per ton, LME copper futures fell 2.05% to $10,598.50 per ton, LME tin futures fell 1.22% to $35,290.00 per ton, LME aluminum futures fell 0.85% to $2,739.50 per ton, LME nickel futures fell 0.66% to $15,105.00 per ton, and LME lead futures fell 0.58% to $1,977.50 per ton.On October 15th, the U.S. Senate failed to pass a procedural vote on October 14th, preventing it from advancing a temporary appropriations bill proposed by the Republicans. The bill required 60 votes to advance, but the vote was 49 in favor and 45 against. It is reported that if passed, the temporary appropriations bill will provide funding for the government until November 21st, but the bill does not address any health care demands put forward by the Democrats.

Yields are driving the USD/JPY exchange rate toward 134.50, and anxieties about wage growth and an economic slowdown have turned the focus

Alina Haynes

Aug 18, 2022 11:17

 截屏2022-08-18 上午10.05.08.png

 

At Thursday's Tokyo open, the USD/JPY accepted bids to renew intraday lows near 134.90, preserving the week's gains. Recent weakness in the yen pair may be related to speculation about the state of Japan-China ties and the job market in the Asian superpower. Bears can find encouragement in the most recent Fed Minutes. Bears in the session are bolstered by worries of a recession, and bulls in the pair are still holding on.

 

Takeo Akiba, Japan's National Security advisor, and Yang Jiechi, China's Foreign Minister, reportedly agreed to continue discussions to establish a positive and stable alliance, as reported by Japan's local media Jiji earlier in the Asian session.

 

Elsewhere, On Thursday, a monthly Reuters poll showed that more major Japanese companies are increasing pay to attract workers and address persistent personnel shortages. That's encouraging because it suggests Japan's corporate sector is beginning to address the issue of decades of stagnant pay.

 

Current US 10-year Treasury yields of 2.89 percent are down from the week's high of roughly 2.90 percent. Both the disappointing FOMC meeting minutes and the risk-positive China Securities news were ignored by the benchmark bond coupons. According to the Federal Reserve Minutes, officials were unanimous in their support of the 75 basis point rate hike in August and expected future rate hikes to be less rapid. In addition, the Minutes revealed that Fed officials were aware of the risk that the Fed could tighten policy too far.

 

In order to spur investment, China may issue an additional 1.5 trillion yuan in debt, according to China Securities news.

 

As a result of these wagers, the S&P 500 Futures decline by 0.25 percent, reflecting Wall Street's poor showing, while the Nikkei 225 index in Japan has daily losses of close to 1 percent.

 

Trading pairs should focus on the weekly releases of US Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey for August in the absence of other relevant data/events.

 

In order to consolidate their gains, USD/JPY bulls need to push the pair over the 50-day moving average near 135.40. The 21-day moving average is a support level around 134.50, therefore a dip towards that level cannot be ruled out until then.


Suggestion