EUR/USD
1.18141
0.203%
Gold
4814.36
3.341%
Oil
61.674
-0.641%
USD/JPY
155.393
-0.132%
GBP/USD
1.36906
0.165%
GBP/JPY
212.747
0.042%
Real-time News
February 3rd - Recently, the Fujian Energy Regulatory Office convened a symposium on the signing and performance of medium- and long-term coal contracts for power generation by coal-fired power plants in Fujian Province. The meeting required all coal-fired power plants to: 1. Deeply understand the political significance and public welfare responsibility of ensuring energy supply during the peak winter season, prioritizing supply tasks, strengthening a bottom-line mentality, and ensuring a safe and stable energy supply. 2. Closely monitor weather changes and load trends, dynamically optimize coal procurement and storage strategies, strengthen coal source coordination and transportation scheduling, and ensure safe inventory and orderly supply at all times. 3. Proactively connect with key coal production enterprises and compliant trading channels, strengthen contract signing and performance management, reinforce the spirit of contracts, implement the principle of "high quality, high price; low quality, low price," control coal quality, and effectively consolidate the resource foundation for supply security.February 3 - Demand at Tuesdays Japanese 10-year government bond auction was below the 12-month average as investors grew increasingly cautious ahead of the upcoming House of Representatives election. The bid-to-cover ratio was 3.02, down from 3.30 in the previous auction and the 12-month average of 3.24. The end spread was 0.05, unchanged from last month. Traders are bracing for market volatility ahead of the February 8 election. Recent polls indicate that Japans ruling coalition is poised to win 300 of the 465 seats, while the Liberal Democratic Party (LDP) is expected to secure a single majority. This outcome would allow Prime Minister Sanae Takaichi to push forward with fiscal stimulus plans, potentially increasing the governments debt burden. Last month, Japanese government bond yields surged to multi-year highs, triggered by Takaichis proposed consumption tax cuts. While they have since retreated somewhat, the benchmark 10-year bond yield remains around 2.25%, its highest level since 1999. Overnight index swaps indicate that traders expect a 76% probability of a rate hike before April, while the market has fully priced in the expectation of a 25 basis point rate hike by June.February 3 – The Reserve Bank of Australia (RBA) today decided to raise interest rates by 25 basis points to 3.85%, with a hawkish statement hinting at a possible further rate hike in May following the release of the first-quarter CPI data. The bank noted that strong private demand and capacity constraints could keep inflation high for "some time." This latest decision reverses the rate cut announced last August and will spark a heated debate in an economy struggling with weak productivity growth regarding excessive spending by state and federal governments.Reserve Bank of Australia: Global economic growth in 2025 is better than expected, and downside risks have diminished.February 3rd - Todays interest rate hike was a difficult decision for the Reserve Bank of Australia (RBA), as it had just cut rates last August. The RBA had previously bucked the trend of other economies, deliberately keeping rates low for an extended period to prevent soaring unemployment. Now, it becomes the first major central bank to return to a rate-hiking path since the pandemic began. Some economists had predicted that the RBA might wait for more data, given recent slowing monthly inflation data and the strengthening Australian dollars potential to "cool" the economy. Domains chief economist, Nicola Powell, stated that while the rate hike would reduce borrowers ability to finance their homes, it would also weaken the upward momentum in the housing market. Assuming lenders fully pass on the cost of the rate hike, a borrower with a $600,000 loan would see their monthly payment increase by approximately $90. The focus now shifts to the tone set by Governor Bullock at the post-meeting press conference. Economists are currently uncertain whether the RBA will continue with rate hikes or if this is a one-off event.
