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The Pakistan Army stated that the negotiations over the past 24 hours have made encouraging progress and taken an important step toward reaching a final agreement.On May 23, the Financial Times reported that mediators believe the US and Iran are close to reaching an agreement to extend the ceasefire by 60 days and lay the foundation for discussions on Irans nuclear program. According to senior sources familiar with the negotiations, the agreement would include a phased reopening of the Strait of Hormuz and a commitment to consult on the dilution or transfer of Irans highly enriched uranium stockpiles. The US would also ease its blockade of Iranian ports, agree to sanctions waivers, and phase out the freezing of Tehrans assets held overseas. A diplomat familiar with the negotiations stated, "The agreement seems to be moving in the right direction. It has been submitted to the US for review, and Iran is likely prepared to make further concessions on the nuclear issue." These signs of progress are attributed to a series of key meetings held by negotiators from Pakistan and Qatar with their Iranian counterparts on Thursday and Friday.On May 23, Iranian Foreign Ministry spokesman Baghae stated that the core purpose of Pakistani Army Chief of Staff Munirs visit to Iran was to convey and exchange specific information between Iran and the United States. He said, "At this stage, all our core focus is on ending this war of imposition." Baghae indicated that the two sides have held several rounds of intensive exchanges of views on different clauses in the proposal. They have also conducted in-depth discussions on issues where they have serious disagreements. Given the consistently contradictory stance of the United States, Iran cannot currently assert that this negotiation process will undergo a fundamental change. He said, "Our views have indeed converged somewhat, but this does not mean an agreement has been reached; it merely allows us to explore a possible solution."On May 23, an Iranian Foreign Ministry spokesperson stated that the current mediation process with the United States is "time-consuming and laborious" because the USs hostility dates back decades. "We discussed some key points and wording where disagreements remain, and made suggestions, some of which are still under review, with all parties expressing their opinions," the Islamic Republic News Agency quoted Bagae as saying. Bagae also thanked Pakistan for its mediation efforts.Iranian Foreign Ministry Spokesperson: We are currently focused on finalizing the memorandum of understanding with the United States. Over the past week, the two sides have been getting closer, and we must wait and see what happens in the next three or four days.

The USD/JPY exchange rate is anticipated to resume its ascent from 132.00 as the BOJ favors greater policy easing

Alina Haynes

Jan 05, 2023 15:05

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The USD/JPY pair has gradually retraced approaching the crucial support level of 132.00 in the early Asian session. Following a big increase to approximately 132.70, the asset is seeing weak selling pressure. The major may resume its ascent despite the risk-on market mentality, as the Bank of Japan (BOJ) has supported greater policy easing to bolster wages.

 

As the Federal Reserve (Fed) is projected to lower the rate of interest rate hikes, the S&P500 exhibited a stronger recovery on Wednesday following a two-day fall.

 

The US Dollar Index (DXY) dropped sharply below 104.00 as an adjustment to the Fed's sluggish pace of policy tightening anticipated a reduction in the US price index for goods and services. In addition, the yield on US Treasury bonds has increased due to the majority of Fed policymakers' support for a slower rate of interest rate increases. The yield on 10-year US Treasuries has declined to approximately 3.69 percent.

 

Investors will await the release of the United States Automatic Data Processing (ADP) Employment Change (Dec), which is projected to be 150K, up from the previous release of 127K. In contrast, the US Nonfarm Payrolls (NFP) report reveals a rise of 200K jobs compared to the previous estimate of 263K. The US Institute of Supply Management's (ISM) report of a decline in manufacturing activity and the Federal Reserve's decision to increase interest rates increase predictions of a slowed employment creation process.

 

After BOJ Governor Haruhiko Kuroda pushed for greater policy easing to drive the wage price index in order to meet higher inflation projections for CY2023 and CY2024, the Japanese yen experienced a strong fall in Tokyo.