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According to Japans Asahi Shimbun: Japan will not recognize the State of Palestine at the United Nations General Assembly.On September 17, Chery Automobile announced on the Hong Kong Stock Exchange that it plans to issue 297,397,000 H shares (subject to the exercise of the over-allotment option) for its Hong Kong listing, with a price range of HK$27.75 to HK$30.75. The price is expected to be completed on September 23. The shares are expected to begin trading on the Hong Kong Stock Exchange on September 25.September 17th news, Google (GOOG.O) has been trying to catch up with OpenAI in the field of generative artificial intelligence, and now it seems to have finally made progress among users. This week, Googles Gemini application took the first place in the Apple App Store free application rankings, surpassing ChatGPT, which led the generative artificial intelligence craze nearly three years ago. Googles Gemini AI model has recently launched some updates, attracting new users. Last month, Google released an upgraded version of its "Flash" AI model, 2.5 Flash Image, which added an image editing feature called Nano Banana. Josh Woodward, head of the Gemini application, said that this product brought 13 million new users to the Gemini application in just four days, bringing its total number of users since its launch to 23 million.According to Japans Asahi Shimbun: Japan will postpone recognizing the State of Palestine.On September 17th, several major US tech companies announced they would invest over $40 billion to expand the UKs AI infrastructure, a significant boon for the country, coinciding with a state visit from President Trump. Microsoft (MSFT.O) said on Tuesday it would invest $30 billion in UK AI infrastructure and existing operations by 2028, its largest financial commitment yet in the country. Google (GOOG.O) said it would invest approximately $6.8 billion in AI, R&D, and related engineering in the UK over the next two years. Meanwhile, Nvidia (NVDA.O), OpenAI, and British company Nscale are collaborating to build AI infrastructure in the UK to meet OpenAIs computing needs. The project, called "Stargate UK," is expected to be located in northeast England and utilize tens of thousands of Nvidias Grace Blackwell Ultra graphics processing units. Among other investments, AI cloud computing company CoreWeave plans to invest approximately $2.04 billion in AI data center capacity and operations in the UK. Salesforce announced it would invest a further $2 billion in its UK operations by 2030, while BlackRock will pour £500 million into data centers across the UK.

USD/JPY Rate Reversal Takes Shape Ahead of 50- Day SMA

Cory Russell

Jun 02, 2022 18:16

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TALKING POINTS FOR THE JAPANESE YEN

As it carves a sequence of higher highs and lows ahead of the 50-Day SMA (127.03), the USD/JPY looks to have reversed, and the exchange rate may follow the upward slope in the moving average as it clears last week's range bound price action.

RATE REVERSAL IN THE USD/JPY TAKES FORM AHEAD OF THE 50-DAY SMA

Following an unexpected jump in the US ISM Manufacturing survey, the USD/JPY has risen to a new weekly high (130.19), with the exchange rate gaining over 2.5 percent since the start of the week, as it seems to be tracking the rise in US Treasury rates.


The improvement in the ISM survey should keep the Federal Reserve on track to raise interest rates because it indicates a healthy economy, and Governor Christopher Waller's recent remarks suggest the central bank will shift gears again in 2022, as the permanent voting member of the Federal Open Market Committee (FOMC) favors "tightening policy by another 50 basis points for several meetings."


While speaking at an event hosted by the Institute for Monetary and Financial Stability, Governor Waller expressed his support for keeping "the policy rate at a level above neutral" as the central bank struggles to control inflation, adding that "the strong labor market can handle higher rates without a significant increase in unemployment" (IMFS).


As a result, the upcoming update to the US Non-Farm Payrolls (NFP) report, which is expected to add 325K jobs in May, may fuel speculation for another 50bp rate hike, and it remains to be seen if Chairman Jerome Powell and Co. will forecast a steeper path for the Fed Fund rate at the next interest rate decision on June 15, when the central bank is set to release the updated Summary of Economic Projections (SEP).


Until then, the differing trajectories of the FOMC and the Bank of Japan (BoJ) may keep USD/JPY afloat, but the retail sentiment tilt is certain to endure as traders have been net-short the pair for the most of 2022.


According to the IG Client Sentiment report, 31.51 percent of traders are presently net-long USD/JPY, with a short-to-long ratio of 2.17 to 1.


The number of traders who are net-long is up 0.16 percent from yesterday and up 23.49 percent from last week, while those who are net-short is up 4.70 percent from yesterday and down 4.98 percent from last week. The increase in net-long positions comes as the USD/JPY makes a series of higher highs and lows, while a drop in net-short interest has helped to relieve congestion, with just 26.83 percent of traders net-long the pair last month.


As a result of the increase in US rates, USD/JPY may continue to climb ahead of the NFP data, and the exchange currency may continue to follow the positive slope of the 50-Day SMA (127.19) as it approaches the moving average.



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