EUR/USD 1.15113
-0.144%
Gold 4074.47
-0.710%
Oil 81.041
-1.944%
USD/JPY 160.649
0.715%
GBP/USD 1.34494
-0.117%
GBP/JPY 216.068
0.608%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Sonys stock price rose 2% after the company released its financial report, reversing its earlier decline.July 31st - The Bank of Japan (BOJ) kept interest rates unchanged on Friday, with only one voice supporting a rate hike. Meanwhile, in its monetary policy outlook report, the BOJ lowered its inflation forecast for the current fiscal year. Fridays decision came amid escalating tensions in the Middle East. For oil-dependent Japan, inflation concerns remain. However, the central bank plans to further monitor the situation, especially after the June rate hike. On Thursday, Japan intervened in the foreign exchange market by buying yen and dollars, while US authorities also conducted currency checks. Now, all eyes are on BOJ Governor Kazuo Uedas afternoon press conference, hoping to glean clues about the central banks future policy direction and any commentary on the intervention.Piper Jaffray: Lowered its price target for Reddit (RDDT.O) from $215 to $195.On July 31, at a press conference held today, the China Council for the Promotion of International Trade (CCPIT), representing the Chinese business community, responded to the EUs efforts to accelerate the draft amendments to the Cybersecurity Act and the EUs Industrial Accelerator Act. We urge the EU to fully consider the opinions of the global business community in the subsequent legislative process and to prudently assess the impact of the relevant legislation on Sino-EU business cooperation, the EUs own industrial development, and the stability of the global supply chain. We call on the EU to adhere to the principles of technological neutrality and performance orientation, to delete or substantially modify rules and arrangements that are country-specific or discriminatory, and to effectively safeguard the common interests of existing investments and the common interests of future Sino-EU cooperation. Chinese enterprises are important partners in Europes digital transformation and industrial upgrading. The Chinese business community is willing to continue to strengthen cooperation with the EU to jointly promote cybersecurity governance and green economic development, maintain an open, fair, and non-discriminatory market environment, and jointly ensure the stability and smooth operation of global industrial and supply chains.On July 31, the Bank of Japan (BOJ) kept its policy rate at 1%, in line with expectations. Last month, the bank had already raised its benchmark interest rate to its highest level since 1995. BOJ policy board member Hajime Takada dissented and supported a 25-basis-point rate hike, arguing that the situation had entered a new phase and the BOJ needed to adopt a flexible approach to address upside risks to prices and changes in the overseas financial environment. The BOJ stated that it will continue to raise interest rates based on economic and price developments and financial conditions. Underlying inflation is approaching 2%, financial conditions remain accommodative, and both significant downside risks to economic activity and significant upside risks to prices have decreased. In its latest economic forecasts, the BOJ lowered its core CPI forecast for fiscal year 2026 from 2.8% to 2.5%, while raising its GDP growth forecast for fiscal year 2026 from 0.5% to 0.6%.

Before US consumer-centric data, USD/JPY declines from a 23-year high as yields go lower

Alina Haynes

Jul 15, 2022 11:36

 截屏2022-07-15 上午9.43.28.png

 

In addition to continuing Thursday's decline from a multi-year high into Friday's opening Asian session, USD/JPY takes offers to renew intraday bottom at 138.80. The current decrease in the yen pair may be attributed to market inertia, yield reductions, and a cautious outlook before the publication of significant US data.

 

While 2-year bond coupons decreased by 0.75 percent to 3.12 percent, 10-year US Treasury rates finished Thursday at 2.95 percent, up 0.95 percent from the previous day. As a result, the difference between the coupons of short-term and long-term bonds shrank from 23 basis points (bps) on Tuesday to 17 bps. The market's fears of a recession appear to have lately subsided due to the shrinking disparity between the 2-year and 10-year US Treasury rates, allowing the US dollar bulls to recover their breath. It's noteworthy that as of press time, the 10-year Treasury rate flashes 2.945 percent and the 2-year bond coupon fluctuates at 3.12 percent.

 

Additionally, the Fed's policymakers' efforts to stop discussions of a 100 basis point rate increase and confusing US data supported USD/JPY selling.

 

Among the prominent Fed speakers who made an effort to downplay the probability of higher interest rates were Christopher Waller, governor of the Federal Reserve, and James Bullard, president of the Federal Reserve Bank of St. Louis. Bullard of the Fed, however, noted that "up to this point, we've framed this conversation exclusively in terms of 50 vs 75." Reuters quotes Fed's Waller as saying that markets may have anticipated a 100 basis point rate increase in July too soon. It should be noted that the Federal Reserve will observe a blackout period before the July 28 Federal Open Market Committee meeting starting this weekend (FOMC).

 

The Producer Price Index (PPI) for final demand in the US climbed by 11.3 percent yearly in June, up from 10.9 percent in May, according to the US Bureau of Labor Statistics. This outcome was higher than the 10.7% market expectation. In addition, compared to the previous week's total of 235,000 and the market's projection of 235,000, there were 244,000 first claims for unemployment benefits for the week ending July 9. The number of weekly claims for unemployment rose to its highest level in five months.

 

The market's cautious optimism is reflected in the intraday S&P 500 Futures' 0.13 percent advance to 3,800 in reaction to these wagers.

 

Notably, US Treasury Secretary Janet Yellen chastises Russia for its invasion of Ukraine at the opening of the G20 summit in Indonesia. The readiness of China to ease tensions with Australia seems to lift spirits.

 

Given this, USD/JPY traders should pay close attention to the risk catalysts for immediate direction ahead of US Retail Sales, which are anticipated to increase 0.8 percent MoM in June from -0.3 percent in May. These readings will be followed by the preliminary readings of the Michigan Consumer Sentiment Index (CSI) for July, which are anticipated to decrease to 49.9 from 50.0 previously, as well as Fedspeak.


Suggestion