EUR/USD 1.15961
-0.134%
Gold 5163.14
1.469%
Oil 74.844
0.754%
USD/JPY 157.418
-0.171%
GBP/USD 1.33205
-0.267%
GBP/JPY 209.694
-0.420%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
March 4th - Bank of Japan Governor Kazuo Ueda stated on Wednesday that a significant increase in wage levels is needed for Japan to sustainably achieve its 2% inflation target. Speaking in parliament, Ueda said, "The Bank of Japan cannot exert a strong influence on real wage growth," which depends primarily on medium- to long-term labor productivity. He added, "However, we will implement monetary policy to ensure that Japan sustainably and stably achieves its inflation target while wages grow."Bank of Japan Governor Kazuo Ueda: If the economic and price trends are in line with our forecasts, we will continue to raise interest rates.Japans household consumer confidence index for February was 40, below the expected 38.2 and the previous reading of 37.9.March 4th - Since the outbreak of conflict in the Middle East this week, the yen has continued to weaken, deviating from its traditional safe-haven asset role, and Tokyo traders are preparing for possible government intervention. The yen has depreciated by about 1% since last Friday, to 157.2 yen to the dollar. Traders say this contrasts sharply with previous periods of geopolitical tension. Neil Newman, Japan strategist at Astris Advisory, said, "The yen is no longer a safe-haven asset. Companies stopped doing so about four years ago. They are now under pressure to the opposite, encouraged to invest overseas, and are still doing so on a large scale. In Japans current economic environment, there is no incentive to repatriate funds." Analysts say the yens unexpected weakness highlights structural changes and vulnerabilities in the Japanese economy. The market has been assessing the impact of Sanae Takashis expanded fiscal spending plan and her opposition to further interest rate hikes by the Bank of Japan. Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management, said increased exchange rate volatility has significantly reduced the yens appeal as a hedging currency. Geopolitical conflicts have also increased Japans exposure to rising energy prices and upside inflation risks.Bank of Japan Governor Kazuo Ueda: (When asked whether Japanese Prime Minister Sanae Takaichi expressed reservations about raising interest rates during their meeting in February) The two exchanged general views on economic and price developments.

GBP/USD Attempts To Protect 1.2300 As Market Sentiment Remains Tenuous Due To Rising Crude Prices

Daniel Rogers

Apr 03, 2023 14:15

During the Asian session, the GBP/USD pair is attempting to defend its round-number support level at 1.2300. As a consequence of OPEC+'s announcement of additional oil production cuts, investors in the early Tokyo session discounted the impact of higher oil prices on the Cable. Concerns about global inflationary pressures have been reignited by the crude price increase. Therefore, it may be necessary for central banks to maintain high interest rates for an extended period of time.

 

Following a series of favorable sessions last week, S&P500 futures reported significant losses during the Asian session, as higher oil prices will increase input costs for companies that rely on oil for transportation and manufacturing. The sentiment on the market has deteriorated, and risk-perceived assets have been punished.

 

The US Dollar Index (DXY) is exhibiting a minor correction after reaching a new weekly peak of 102.95. The impact of the deceleration in the US core Personal Consumption Expenditure (PCE) Price Index data on the USD Index was mitigated by rekindled inflation expectations in the United States due to higher crude prices.

 

The US PCE Price Index increased by 0.3% on a monthly basis, which was below both the consensus estimate of 0.4% and the prior reading of 0.5%. In addition, the annual rate of US PCE inflation decreased to 4.6% from 4.7% in the previous report and the consensus estimate.

 

If inflation spikes due to elevated crude prices, the Federal Reserve (Fed) may contemplate additional rate hikes in May.

 

Increasing inflationary pressures on the front of the British Pound are causing the Bank of England more trouble. (BoE). As food prices continue to rise, retail price inflation has increased in the United Kingdom. Moreover, labor shortages continue to influence inflation expectations. However, BoE policymakers are optimistic that the rate of inflation in the United Kingdom will soon begin to fall sharply.


Suggestion