EUR/USD 1.17386
0.003%
Gold 4299.39
0.458%
Oil 57.266
-0.824%
USD/JPY 155.873
0.202%
GBP/USD 1.33659
-0.149%
GBP/JPY 208.340
0.053%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Hong Kong Financial Secretary Paul Chan Mo-po stated today (December 14th) that public consultation on the new fiscal years budget is about to begin. One of the key issues will be how to further expand the scope and areas of economic development, accelerate the cultivation and application of innovative technologies, expedite the optimization of the industrial structure, create more high-quality jobs, and add momentum to high-quality development. We look forward to more concrete suggestions from everyone, working together to build a better future for Hong Kong.On December 14, the Sansha Maritime Safety Administration issued a navigation warning stating that rocket debris will fall in certain waters of the South China Sea between 10:15 and 12:15 on December 16, and entry is prohibited.On December 14th, a political funds income and expenditure report revealed that at least five branches of the Liberal Democratic Party (LDP) in Mie, Osaka, Yamaguchi, Nagasaki, and Kagoshima prefectures used political funds to pay for entertainment venues such as bars and nightclubs. In 2023, these expenditures totaled approximately 1.11 million yen (about 50,000 yuan). According to regulations, LDP branches are not required to record single political fund expenditures of less than 50,000 yen (about 2,264 yuan), suggesting the actual amount of political funds involved in the alleged misuse may be higher. In response to the allegations, the Osaka branch claimed the expenditures were "intended to create a smooth communication environment." The Mie and Nagasaki branches stated they would strengthen their management.On December 14th, the U.S. Department of Defense announced that two U.S. Army soldiers and one civilian translator were killed and three others wounded in an attack in Syria on December 13th. The Department of Defense stated that the attack was carried out by militants from the extremist group ISIS, and the attackers were killed. In response, U.S. President Trump stated that retaliatory action would be taken. Also on December 13th, Nourdin Baba, a spokesman for the Syrian transitional governments Interior Ministry, said that the gunman who attacked a joint Syrian-U.S. patrol in Homs province in central Syria was a Syrian security officer who may have held extremist views.On December 14th, local time, Ukrainian President Volodymyr Zelenskyy stated that Ukraine is preparing for meetings with the United States and European allies in the coming days. He will travel to Berlin to meet with US and European representatives to discuss "building the foundations of peace." Zelenskyy stated that this series of consultations is "decisive" for Ukraine, and that Ukraines core objective is "to achieve a decent and just peace." Earlier that day, Germany announced that it would host a US and Ukrainian delegation on the 14th to hold talks on issues such as the Russia-Ukraine ceasefire and to prepare for the summit of European leaders, including Zelenskyy, to be held in Berlin on the 15th. According to previous reports, US Presidential Envoy Witkov and former White House senior advisor Jared Kushner have already departed for Germany to meet with Zelenskyy and other European leaders.

USD/JPY falls to a two-month low at 131.50 owing to decreasing rates and recession concerns

Daniel Rogers

Aug 02, 2022 15:11

 截屏2022-08-02 上午9.53.23.png

 

During Tuesday's Asian session, USD/JPY bears hold dominance at the lowest levels in eight weeks as the pair flirts with the 131.50 barrier. Recent weakening in the pair may be linked to negative rates and recent good news on Japan, not to mention inconsistent Fed and China-related rhetoric.

 

US 10-year Treasury rates touched a four-month low of roughly 2.58 percent the day previous, as US economic data heightened concerns of a slump. As traders awaited the announcement of vital US employment numbers for July on Friday, the dollar dropped. In spite of this, the US Dollar Index (DXY) plummeted to a new monthly low before bouncing off 105.25 on Monday.

 

In July, the US ISM Manufacturing PMI fell to its lowest level since January 2020, as the activity index fell from 53.0 to 52.8. However, the actual figures outperformed the market projection of 52.0. Additionally, final readings of the US S&P Manufacturing PMI dipped below early predictions of 52.3 to 52.2, compared to 52.7 earlier. In addition, Germany's Retail Sales plummeted 8.8 percent year-over-year in June, compared to a market forecast of -8.0 percent and a prior decrease of -3.6 percent.

 

It should be remembered that the second straight quarterly contraction in US Gross Domestic Product (GDP) caused a "technical recession" and weighed on the US dollar throughout the preceding week. Fed Chair Jerome Powell's indirect warnings that the hawks are losing momentum were in the same tone.

 

On a separate page, Reuters claims three sources familiar with the issue as claiming that US House of Representatives Speaker Nancy Pelosi was slated to visit Taiwan on Tuesday, despite Chinese vows to never "sit idly by" if she made the trip to the self-governed island claimed by Beijing.

 

At home, speculations of an increase in Japanese salaries and challenges to the Bank of Japan's (BOJ) cheap money policies appeared to have sunk the USD/JPY exchange rate, probably due to widespread inflation anxieties. Recent estimates from Nikkei show that the average minimum wage in Japan will climb by a record 3,3 percent in the fiscal year ending in March 2023. The newspaper also noted, "A Japanese panel is aiming to enhance the average minimum wage by 31 yen."

 

Wall Street concluded with minor losses, but 10-year Treasury rates struck a four-month low of approximately 2.58 percent. In spite of this, as of press time, the S&P 500 Futures indicate moderate losses of around 4,120.

 

In the near future, the words of Chicago Fed President Charles L. Evans and Federal Reserve Bank of St. Louis President James Bullard will impact the course of the USD/JPY.


Suggestion