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On April 20, according to a report by RIA Novosti, Russian Deputy Foreign Minister Grushko stated that the Russian military will consider Frances plans to deploy nuclear weapons in non-nuclear European countries when updating its list of priority targets in future conflicts. In an interview, Grushko said that France has announced the possibility of dispersing its nuclear forces to non-nuclear European countries, a point that requires special attention. In the event of a serious conflict in the future, Russia will closely monitor this situation when updating its priority military targets.April 20th - Aviation industry experts said on the 19th that travelers worldwide should prepare for flight cancellations, route reductions, and continued ticket price increases in the coming months, as many airlines are entering "self-protection" mode, cutting capacity and raising fares to cope with unfavorable situations such as insufficient aviation fuel supply and soaring prices. According to data from the UK-based aviation data analytics company, Resair, global air capacity is expected to decline by 3% in May, and at least 19 of the worlds 20 largest airlines have reduced flights in May. Data from the International Air Transport Association (IATA) shows that aviation fuel prices constitute the largest portion of airline costs, accounting for approximately 30% of their total costs. After the US and Israel launched military strikes against Iran at the end of February, effectively blocking the Strait of Hormuz, aviation fuel prices doubled, exceeding $200 at their peak.European futures fell, with the Euro Stoxx 50 futures and the German DAX futures both down more than 1%.April 20th - As of April 15th, the passenger flow of the Shenzhen-Hong Kong cross-border high-speed rail has exceeded 10 million this year, setting a record for the fastest clearance growth since the line opened, 16 days ahead of last year. In response to key scenarios such as concentrated arrivals and departures during the morning rush hour, long-distance train connections, and additional temporary trains during holidays, the Shenzhen Border Inspection Station has established a daily consultation, information sharing, and emergency response mechanism with departments such as the MTR Corporation. They have jointly formulated a special plan to ensure train punctuality, helping the West Kowloon Station of the Guangzhou-Shenzhen-Hong Kong High-Speed Rail maintain a consistently high on-time rate of over 99.8%, ranking among the top in the country. Since the beginning of this year, coupled with the continuous optimization of the "co-location arrangement" clearance model and the full release of policy benefits such as "multiple-entry visas," passenger flow at the port has shown a strong trend of "strong off-season and even stronger peak season." Furthermore, stimulated by the visa-free policy for foreigners visiting China and the 240-hour visa-free transit policy, the number of visa-free arrivals at the port exceeded the number of visa-holding arrivals for the first time.On Monday, April 20, the Hang Seng Index opened 44.28 points higher, or 0.17%, at 26,204.61; the Hang Seng Tech Index opened 16.9 points higher, or 0.34%, at 5,059.58; the H-share Index opened 11.23 points higher, or 0.13%, at 8,856.25; and the Red Chip Index opened 8.71 points higher, or 0.2%, at 4,334.43.

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."