EUR/USD 1.14131
0.136%
Gold 4117.94
0.989%
Oil 86.489
2.722%
USD/JPY 162.941
-0.150%
GBP/USD 1.33871
0.096%
GBP/JPY 218.136
-0.040%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
It is understood that the Bank of Japan is nearing the stage of stabilizing price expectations, rather than pushing up inflation.It is understood that the Bank of Japan is open to raising interest rates more frequently than once every six months.According to reports, Bank of Japan officials believe that the recent weakness of the yen poses an upside risk to inflation.On July 22nd, RSM UK analyst Thomas Pugh stated that the UKs inflation rate fell to 2.6% in June, virtually eliminating the possibility of a Bank of England rate hike next week. While overall inflation was lower than the central banks expectations, the decline was primarily driven by lower food, fuel, and energy prices. More importantly for policymakers, the services sector inflation rate, a key indicator of domestic price pressures, met expectations. Pugh predicts that inflation will rebound to around 3.3% in the autumn as the effects of rising energy costs, supply chain pressures, and food price increases gradually materialize, and could be even higher if oil prices surge further. He expects interest rates to remain unchanged and believes there will be no rate cuts before 2027.On July 22nd, Richard Carter of Quilter Cheviot stated in a report that the Bank of England is expected to maintain its interest rate at 3.75%, while awaiting clearer signs of the impact of the Middle East conflict. The latest UK inflation data shows that the inflation rate fell back to 2.6% in June following a brief drop in oil prices after the US-Iran ceasefire. Carter stated, "Given the possibility that the situation in the Middle East could still escalate into a full-blown conflict as it did earlier this year, this will continue to put pressure on inflation." The market currently expects the Bank of England to raise interest rates by a cumulative 40 basis points by 2026.

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

Alina Haynes

Aug 05, 2022 14:49

截屏2022-08-05 上午9.50.18.png 

 

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.


Suggestion