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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 USD/JPY pair rises to 137.40 on hawkish Fed Powell comments, BoJ policy, and US employment data

Alina Haynes

Mar 08, 2023 14:02

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The USD/JPY pair has risen to around 137.40 in the early Asian session, following an unusual upward move prompted by hawkish comments made by Federal Reserve (Fed) chair Jerome Powell in his congressional testimony.

 

After a sharp decline on Tuesday, S&P500 futures posted modest gains, which may be indicative of minor short coverings amid a bearish market sentiment. As the likelihood of a U.S. economic recession increased, the US Dollar Index (DXY) reached a three-month high above 105.60 on Tuesday.

 

In his testimony before Congress, Fed Chairman Powell disclosed a new strategy for combating inflation. As the current monetary policy is insufficient to achieve price stability, there will be an increase in interest rates in the future. According to Fed Chairman Powell's testimony, investors should anticipate a greater number of rate hikes than previously anticipated because economic indicators indicate that inflationary pressures are strong.

 

Investors should be aware that this was Powell's first comment on interest rates after observing resiliency in consumer spending and an optimistic labor market in January's economic data.

 

In the future, it will be of the utmost significance to release the US Automatic Data Processing (ADP) Employment Change (Feb) data. The economic data is expected to be 200K higher than the previous release of 106K.

 

Friday's release of Governor Haruhiko Kuroda's concluding monetary policy statement by the Bank of Japan (BoJ) is avidly anticipated by investors in Tokyo. As the economy focuses on increasing the labor cost index, it is highly probable that monetary policy will remain extremely lenient. The market responds in a variety of ways when yields on Japanese Government Bonds are modified (JGBs).