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January 23 - Strategists say the yens recent weakness is unlikely to be contained after the Bank of Japan (BOJ) kept interest rates unchanged as expected. Hiromi Ishihara, an analyst at Amundi Japan, stated: "The market is actually implying that current interest rates may be too low relative to current inflation levels. In the short term, we expect the yen to weaken further, but we also expect some government intervention. Therefore, I dont think there will be a disorderly sell-off in the yen, but I also dont think it will appreciate in the short term." Yujiro Goto, an analyst at Nomura Securities, said: "The message from the BOJ indicates that it is aware of the possibility of a rate hike in April. The market had already fully priced in a July rate hike prior to this meeting. Despite the hawkish signals, downward pressure on the yen remains ahead of the BOJ governors press conference."On January 23, Minister of Ecology and Environment Huang Runqiu wrote an article in *New Industrialization*, stating that expanding the supply capacity of green products will be a key focus in promoting green consumption. This includes building a green and low-carbon product standard, certification, and labeling system; promoting the integration of green design and manufacturing of consumer goods; and continuously increasing green procurement efforts. The article also encourages trade-ins of traditional consumer goods such as automobiles and home appliances. Furthermore, it emphasizes strengthening the promotion and application of resource-recycled and remanufactured products, improving the waste recycling system, and perfecting the waste material recycling network. Finally, it calls for cultivating a number of leading green supply chain enterprises and promoting the application of green supply chain management technologies, standards, and certifications.On January 23, Minister of Ecology and Environment Huang Runqiu wrote an article in *New Industrialization*, stating that it is necessary to establish a carbon emission quota management system with clear expectations and transparency, and steadily promote a carbon emission quota allocation method that combines free and paid allocation. A wastewater and waste charging mechanism that covers costs and allows for reasonable profits should be established. The implementation of EOD projects should be steadily promoted, integrating pollution prevention and control projects with green industry development. A diversified investment mechanism for ecological protection and restoration should be established, and comprehensive ecological compensation should be promoted. A sound mechanism for realizing the value of ecological products should be established, supporting various regions in creating comprehensive demonstration models for realizing the value of ecological products, and transforming the ecological value of green mountains and clear waters into economic value according to local conditions.On January 23, Minister of Ecology and Environment Huang Runqiu wrote an article in *New Industrialization*, stating that optimizing environmental impact assessment and approval services will facilitate the implementation of major projects. Strict environmental access controls will be enforced to resolutely curb the blind launch of high-energy-consuming, high-emission, and low-level projects. The deep integration of industrial digitalization, intelligentization, and green development will be promoted, and the upgrading of traditional industrial processes, technologies, and equipment will be vigorously advanced. Green and low-carbon transformation will be promoted in key sectors such as industry, urban and rural construction, transportation, and energy, and high-quality ultra-low emission transformation will be advanced in key industries such as steel, cement, and coking. A multi-energy approach, including wind, solar, hydro, and nuclear power, will be adopted, coordinating local consumption and external transmission to promote high-quality development of clean energy. The complementary and resilient capabilities of the power system will be comprehensively improved, pumped storage will be scientifically planned, new energy storage technologies will be vigorously developed, and the construction of smart grids and microgrids will be accelerated.January 23 - Emerging market stocks, commodities, currencies, and precious metals continued their strong momentum at the start of 2026 as tensions between the US and Europe pressured the dollar and reignited talk of "selling America." Emerging market stocks accelerated their gains on Friday as risk sentiment remained supported by a framework agreement reached between the US and NATO allies regarding Greenland. Asian emerging market stocks rose 0.5%, on track for a new closing high. The MSCI Emerging Markets Latin America index reached its highest level since April 2018, while government bonds in some local currencies also hit new highs. Currencies such as the Brazilian real, Colombian peso, and Chilean peso have all risen more than 3% this year. Meanwhile, gold prices surged to a record high of nearly $5,000 per ounce. Katie Koch, CEO of TCW Group, said, "People are looking to diversify their investments and reduce their holdings of US assets; I would describe it as a quiet sell-off of US bonds." "I dont think there will be any major announcements; theyre just looking for opportunities to diversify."

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.