EUR/USD 1.17195
0.981%
Gold 3373.09
1.032%
Oil 63.693
0.481%
USD/JPY 146.956
-0.958%
GBP/USD 1.35180
0.784%
GBP/JPY 198.637
-0.175%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On August 23rd, SpaceX CEO Elon Musk stated: "Building a fully reusable orbital rocket is one of humanitys most challenging engineering problems to date, even more challenging than landing on the moon. This is why it remains unsolved." He added: "I am cautiously optimistic that Starship will achieve full reusability next year. Another key technology, orbital refueling, is relatively simple and, with luck, could be achieved next year as well. By then, human consciousness and life will be able to extend to other planets and even stars."According to Nikkei on August 23, the leaders of Japan and South Korea are scheduled to meet on Saturday as the two countries seek to enter a new phase of cooperation. Faced with the prospect of slow economic growth and declining exports in both countries, South Korean President Lee Jae-myung emphasized the need for cooperation. "It is necessary to create breakthrough economic cooperation," Lee said in a written interview with the media on Friday. During the summit, Ishiba and Lee Myung-bak are likely to discuss measures to facilitate the millions of tourists traveling between the two countries. Furthermore, Ishiba and Lee are likely to sign an agreement allowing citizens of both countries to obtain two working holiday visas.On August 23rd, local time, according to investigative documents disclosed by German authorities, the Nord Stream 1 and Nord Stream 2 natural gas pipelines were allegedly damaged by at least four time bombs that were transported to the Baltic Sea by a sailboat. Recently, a Ukrainian man was arrested in Italy on suspicion of sabotaging a Russian natural gas pipeline. German authorities believe that the arrested man planned and coordinated the attacks in 2022. According to the disclosed documents, the explosions on both the Nord Stream 1 and Nord Stream 2 were carried out from the Andromeda sailboat. There were allegedly six crew members on the sailboat, four of whom were divers, who placed bombs on the natural gas pipeline at a depth of 70 to 80 meters underwater. According to the documents, the bombs weighed between 14 and 27 kilograms.On August 23, Russias Sputnik News Agency discovered through social media that a new unit of Latin American mercenaries, called the "Special Latin Brigade," had emerged in the Ukrainian Armed Forces. A profile page created by the brigade on the social media platform X in August stated: "The Special Latin Brigade is a newly established brigade-level unit composed of Spanish-speaking Latin American personnel." Previously, the Ukrainian Embassy in Peru (which also oversees diplomatic relations with Ecuador and Colombia) had recruited mercenaries with military service experience to join the Ukrainian Armys 25th Airborne Brigade through its official website.On August 23, Russias First Deputy Permanent Representative to the United Nations, Dmitry Polyansky, said on the 22nd that Russia has requested the UN Security Council to hold an emergency meeting on the Nord Stream gas pipeline explosion. The meeting is scheduled to be held on August 26. According to Russian media reports, Polyansky said on social media that Russia has requested the UN Security Council to hold an emergency meeting on the Nord Stream pipeline explosion. "We will point out the delay in the German investigation and its lack of transparency to the Security Council."

The EUR/JPY is trading around 145.20 as investors wait for Fed and BoJ announcements

Daniel Rogers

Mar 07, 2023 13:51

 EUR:JPY.png

 

The EUR/JPY exchange rate has stayed unchanged so far during the Asian session within a constrained band of 145.04 to 145.20. Since the beginning of the year, the pair has been trending higher, mainly as a result of the US Dollar's fundamentals, though the Yen has also contributed locally.

 

Initially, Federal Reserve policy has ruled the dispute between the Euro and the US Dollar. The testimony of Fed chairman Jerome Powell this week will be carefully watched for any new indications as to whether the U.S. central bank could reaccelerate the pace of rate rises in reaction to recent statistics. The Fed has increased interest rates by 25 basis points at each of its last two meetings after giving a run of 50bp hikes last year. Based on recent information regarding these meetings, dealers of Fed funds futures are pricing in a 76% chance that the Fed will increase rates by 25 basis points at its meeting on March 21–22 and a 24% chance of a 50 basis point increase.

 

In recent months, however, the EUR has confronted its own basic challenges. "A build-up of EUR long positions late last year and into January mirrored a drop in European gas costs and a strengthening in the view that Germany could escape recession this year," analysts at Rabobank said. "Germany may still go through a technical slowdown in Q4 2022/Q1 2023, but more recent statistics show that the economy is resilient. Although "resilient" does not necessarily equate to "powerful," the market is more prepared for these data dumps than it was at the end of last year by holding longer EUR holdings. This indicates that the ECB's hawkish language may find it difficult to coax the EUR significantly higher, experts said, especially in light of the dollar's recent resilience.

 

The upcoming BoJ policy meeting is planned for March 10, and it will be Kuroda's last. Markets expect that he will modify YCC to start the policy normalization process. "However, this is dubious without the result of the spring wage talks," Rabobank analysts observed. "We anticipate that the Bank of Japan will implement policy cautiously and gradually this year, with a reduction in YCC being the first move in any decrease in easing. On a 12-month horizon, we see possibility for USD / JPY to hit 125.


Suggestion