EUR/USD 1.13775
-0.440%
Gold 4114.63
-1.830%
Oil 73.173
-0.986%
USD/JPY 161.566
-0.006%
GBP/USD 1.31869
-0.465%
GBP/JPY 213.060
-0.463%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 24th - As of 2:30 PM closing, the Shanghai Gold futures contract fell 0.82% to 902 yuan/gram, the Shanghai Silver futures contract fell 4.36% to 14,868 yuan/kilogram, and the SC Crude Oil futures contract fell 1.52% to 492 yuan/barrel.June 24th - The dollar hit its highest level since November on Tuesday as traders solidified their view that the Federal Reserve would raise interest rates this year. The Feds policy outlook contrasts with that of other central banks globally. Traders now expect nearly two 25-basis-point rate hikes in the US by early 2027. "The dollar has room to rise; it tends to strengthen before a Fed rate hike; the market is currently speculating that the rate hike cycle may begin in September," said Jordan Rochester, a strategist at Mizuho International. Meanwhile, the euro fell to its lowest point in a year after comments from European Central Bank President Christine Lagarde prompted traders to reduce their bets on rate hikes in the region. The yen continued to be pressured as markets perceived the Bank of Japans rate hikes as insufficient to curb the yens decline, keeping traders wary of potential foreign exchange intervention.Traders said the Argentine interbank peso closed down 0.61% at 1,471.5 pesos to the dollar, its lowest level in eight months.According to the Financial Times, SpaceXs (SPCX.O) $25 billion bond issuance attracted nearly $90 billion in subscription orders around noon local time.A Reuters/Ipsos poll shows that only 23% of Americans believe the postwar relationship between the United States and Iran is stronger, while 35% believe it is more fragile.

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

Alina Haynes

Apr 06, 2023 11:52

 EUR:JPY.png

 

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."

Suggestion