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On April 9th, US President Trump stated on social media, "NATO wasnt there when we needed them, and they wont be there if we need them again. Remember Greenland, that poorly managed ice sheet." This followed a meeting between President Trump and NATO Secretary General Rutte, who spent over 90 minutes at the White House. Rutte later stated that he had a very frank and open discussion with President Trump, describing it as a discussion between two good friends, and expressed great admiration for Trumps leadership.April 9th - Singaporean government agencies will implement measures to reduce electricity consumption and enhance energy resilience due to global energy supply shortages caused by the Middle East conflict. The National Environment Agency stated in a statement on Wednesday that immediate measures include setting air conditioning temperatures to 25 degrees Celsius or higher, controlling the operating hours of air conditioners, lighting, and elevators, and unplugging or turning off non-essential equipment when not in use. Singapore had previously warned that fuel prices are expected to remain high for the foreseeable future due to widespread disruptions to Middle Eastern oil and gas production and transportation, leading to higher electricity bills in the coming months.Venezuelan Acting President Rodriguez: The urgent task is to raise workers wages through the development of oil and mining.April 9th - US President Trumps Iran peace plan is facing resistance from a key group: the oil industry. An industry consultant stated that oil company executives are contacting the White House, Secretary of State Rubio, and Vice President Vance to protest allowing Iran to collect tolls on passage through the Strait of Hormuz as a condition for peace negotiations. When asked if the executives had contacted the White House to protest the toll policy, the consultant replied, "Of course! We never needed to do that before—and I think weve already won the war. Whenever you have access to government, you ask, What are you thinking?"1. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 2.85% to 47,909.92 points, the S&P 500 rose 2.51% to 6,782.81 points, and the Nasdaq Composite rose 2.8% to 22,635 points. Sherwin-Williams rose nearly 7%, and Caterpillar rose more than 6%, leading the Dow. The Wind U.S. Tech Big Seven Index rose 2.49%, Facebook rose more than 6%, and Google rose nearly 4%. The Nasdaq China Golden Dragon Index rose 3.05%, Pony.ai rose more than 11%, and Hesai Technology rose more than 8%. 2. All three major European stock indexes closed higher. The German DAX rose 5.06% to 24,080.63 points, the French CAC40 rose 4.49% to 8,263.87 points, and the UK FTSE 100 rose 2.51% to 10,608.88 points. 3. Most US Treasury yields fell. The 2-year Treasury yield fell 0.02 basis points to 3.790%, the 3-year Treasury yield fell 0.06 basis points to 3.811%, the 5-year Treasury yield fell 0.18 basis points to 3.924%, the 10-year Treasury yield fell 0.20 basis points to 4.293%, and the 30-year Treasury yield rose 1.42 basis points to 4.886%. 4. The most active US crude oil futures contract closed down 14.56% at $96.5 per barrel; the most active Brent crude oil futures contract fell 11.5% to $96.7 per barrel. 5. International precious metals futures generally closed higher. COMEX gold futures rose 1.29% to $4745.00 per ounce, and COMEX silver futures rose 3.14% to $74.25 per ounce. 6. Most domestic commodity futures markets closed lower, with energy products, chemicals, and shipping futures leading the declines. Low-sulfur fuel oil fell 15.26%, LPG hit the daily limit down, asphalt fell 8.95%, and the container shipping index (European route) fell 7.42%. Precious metals and base metals rose, with Shanghai silver rising 5.63% and Shanghai tin rising 4.05%.

Before the US NFP, the USD/JPY is likely to decrease to roughly 132.00

Alina Haynes

Aug 05, 2022 14:49

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The difficulties that the USD/JPY pair met around 133.00 during the Asian session are now in full force. As investors predict a disappointing result from the US Nonfarm Payrolls (NFP) data, the asset has printed a low of 132.77 and is projected to decrease further to about 132.00.

 

JP Morgan experts projected that the US Nonfarm Payrolls (NFP) will be poorer than expected at 200K in the July labor market statistics, compared to the consensus expectation of 250k jobs gained in the month. The US economy produced 372k new jobs in the labor market in June. The labor market is under great pressure as a result of data showing a continued fall in job creation. The unemployment rate, though, will be constant at 3.6 percent.

 

Increased labor market dangers are a result of rising interest rates and their compounding impacts. Due to pricey dollars, business players are unable to invest without reluctance. Low investment possibilities cannot thus speed the process of creating jobs.

 

Despite the Federal Reserve (Fed) policymakers' enhanced interest rate ambitions, the US dollar index (DXY) has thrown up the support of 106.00. According to Cleveland Fed President Loretta J. Mester, ending the policy tightening program without detecting a decline in the inflation rate for several months is not conceivable at interest rates above 4 percent .

 

Tokyo's entire household expenditure has dramatically climbed from the previous report of -0.5 percent and the predictions of 1.5 percent to 3.5 percent. As an inflation indicator, the economic data may aid the yen bulls. The economic data have greatly improved, which means that the inflation rate may climb much further. The findings may, however, be largely impacted by growing energy expenditures. However, a hike in the labor cost index is shortly to come in order to keep the inflation rate over 2 percent.