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Real-time News
January 30th - Apple had an exceptionally pleasant Christmas. Unprecedented demand for the latest iPhone drove its core device revenue to a staggering $85.27 billion, a 23% year-over-year surge. CEO Tim Cook stated that a direct side effect of this explosive quarter was that Apple entered the year with "extremely low channel inventory." He said, "Were in catch-up mode to meet extremely high levels of customer demand. Were currently experiencing supply constraints, and its difficult to predict at this stage when supply and demand will reach equilibrium." Apple doesnt design its own memory, instead relying on external suppliers such as SK Hynix, Micron Technology, and Samsung Electronics. While other PC manufacturers like Lenovo and Dell have discussed their own stockpiling efforts, Cook was vague about their prospects, only stating that the shortage had a "minimal" impact on last quarters profits, but a "slightly larger" impact on this quarter. He added that Apple will consider "a range of options to address this issue."The head of the European Stability Mechanism stated that the mechanism can be used to provide defense loans to Eurozone countries.British pound options sentiment has turned bearish within a one-month timeframe.On January 30th, the precious metals market experienced a sudden and dramatic "flash crash" after hitting record highs overnight, with COMEX gold experiencing a single-day swing of up to $500! This extreme volatility triggered market panic that spread rapidly like dominoes across all commodity categories! Both domestic and international base metals suffered heavy losses, with new energy metals experiencing a particularly sharp sell-off, and market risk appetite plummeting! Tin prices led the decline among base metals on January 30th. Tin prices, along with gold and silver, had seen significant gains in January, creating a short-term irrational speculative bubble. Under the negative impact of the precious metals flash crash, funds that had previously entered the market rushed to sell at any cost, directly triggering a pullback from these high levels. Adding to the woes, positive macroeconomic sentiment dissipated, and bearish pressure intensified simultaneously: the US dollar index rebounded during the day on January 30th, coupled with an increased probability of Warsh being elected as the Fed Chairman (who has a long-term hawkish stance), fueling market expectations of a tighter Fed monetary policy and concerns about high interest rates or even further increases, putting pressure on commodities like tin.On January 30th, gold prices plunged more than 7% on Friday, falling below the $5,000 per ounce mark. The markets bets on a stronger dollar due to the upcoming appointment of a new Federal Reserve chairman weighed on gold prices. Other precious metals also fell sharply as profit-taking began. UBS analyst Giovanni Staunovo stated, "I still believe that many factors supporting gold prices remain, but a consolidation is healthy after the strong gains of recent weeks." He added that the nomination of the new Fed chairman is putting immediate pressure on gold prices. Analyst Ross Norman said, "We believe gold prices may test lower levels further, but will then rebound, with an expected average price of $5,375 in 2026 and a high of $6,400 in the fourth quarter." He added, "While a significant portion of silvers recent rally is based on solid fundamentals, there is clearly an overheated speculative element in the market, and this excess is being squeezed out."

As the BoJ ponders a YCC expansion, EUR/JPY continues to decline, falling below 142.60

Alina Haynes

Apr 06, 2023 11:52

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After plunging below 142.60 during the Asian trading session, the EUR/JPY pair's three-day losing trend was extended. Renewed rumors of an expansion of the Bank of Japan's (BoJ) Yield Curve Control (YCC) are exerting immense pressure on the cross.

 

The Japanese economy is experiencing gradual wage growth, and inflation is expected to respond to recent increases in crude oil prices. Analysts at Wells Fargo believe the BoJ will take advantage of a tactical opportunity to further modify its policy settings in the fourth quarter of 2022, and are inclined toward a meeting in October. They added that this timeframe is optimal for a smooth policy adjustment, as monetary easing from the Federal Reserve (Fed) and other major central banks should alleviate yield pressure.

 

In particular, the Bank of Japan (BoJ) will raise the target yield for 10-year Japanese government bonds (JGBs) from 0% to 0.25% and increase the tolerance interval surrounding this target to +/- 75 basis points.

 

Accelerating PMIs in the Eurozone provide support for the European Central Bank's sustained rate hikes. (ECB). S&P Global reported a Composite PMI of 53.7 on Wednesday, which was higher than the previous release of 52.0 but below expectations of 54.1, the highest level in the past ten months.

 

According to Reuters, S&P Global issued the following statement: "Manufacturing production increased slightly, but the service sector had the greatest impact on March's accelerated growth."

 

Wednesday, ECB policymaker Boris Vuji stated regarding interest rate forecasts, "The majority of the rate-hiking cycle has passed." He added, "We may require additional rate increases to address core inflation."

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