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On July 26, Australian Prime Minister Barnes stated that he would raise the issue of tariffs with US President Trump. This comes after Washington imposed new tariffs on trading partners, including Australia. The Labor government, led by Barnes, has called the tariffs unreasonable and expressed its desire for their removal. When asked if he would discuss the issue with Trump, Barnes replied, "Of course." "We will raise this issue at all levels of the Australia-US relationship, and in fact, we have already done so."July 26 – According to Politico, as the US-Iran conflict continues, Arab countries suffering retaliatory attacks from Tehran are attempting to unite and find a path to peace. However, long-standing contradictions are hindering this process. In recent weeks, senior officials from the UAE and Saudi Arabia have publicly posed for photos together, demonstrating a thaw in relations; Jordan and six members of the Gulf Cooperation Council (GCC) have also held talks at the US State Department and Capitol Hill; and the GCC has issued several joint statements condemning Irans attacks. However, several Arab diplomats, current and former US officials, and people familiar with the regional situation say that while these countries all want to ensure the Strait of Hormuz remains open, their differing priorities in how to achieve this goal are hindering substantial progress. These differences include a series of conflicting interests, such as which countries possess alternative shipping lanes, which countries have the deepest infrastructure ties with Iran, and which countrys economy will suffer the greatest losses in the current crisis. An Iraqi official stated, "They are working together to visit the U.S. Congress and the State Department to coordinate their messaging. But they are not on the same page." The Gulf Cooperation Council (GCC), comprised of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, already had numerous internal divisions before the current conflict, and the war with Iran is further amplifying these contradictions. "They have many issues to resolve, and this war has exacerbated the existing divisions in the Gulf region," said David Schenker, former U.S. State Department director for Middle East affairs.July 26 - Queensland, Australia, confirmed a case of highly pathogenic H5N1 avian influenza on July 25. This is the fourth state in the country to confirm a case of H5N1 avian influenza since June.July 26 - Japanese media reported on the 25th that the temperature in Mie Prefecture in central Japan reached 40.2 degrees Celsius that afternoon. This marks the fifth consecutive day that Japan has experienced temperatures above 40 degrees Celsius, setting a new record for the longest such streak since records began in 2010.The Korea Automobile and Mobility Industry Association (KAMA) predicts that domestic car sales in South Korea will increase by 2.7% year-on-year in the second half of the year, reaching 865,000 vehicles, with total sales for the year reaching 1.71 million vehicles.

GBP/JPY continues to recover from its monthly low of 160.50 due to rising rates and UK GDP

Daniel Rogers

Oct 12, 2022 14:38

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As the yen weakens against major currencies in the early hours of Wednesday, bids for GBP/JPY increase, pushing the pair to a fresh intraday high over 160.40. Due to worries of Japanese intervention, the cross-currency pair rises from a two-week low.

 

With a 5.8% month-over-month decline in August, Japan's machinery orders had their steepest monthly decline in six months. The annual results, however, were equally depressing and behind both the year before and market expectations by 12.6%.

 

It is noteworthy that the negative Japanese results were followed with polling information indicating negativity for the Asian superpower, which caused the GBP/JPY to increase. According to Reuters, a monthly survey that closely resembles the closely watched Tankan quarterly survey conducted by the Bank of Japan (BOJ) revealed that the outlook for manufacturers is expected to worsen over the next three months, while the outlook for the service sector is expected to continue to improve.

 

US 2-year Treasury yields, on the other hand, reversed the previous day's decline from a two-week high, falling as low as 4.30 percent. The Nikkei 225 and mildly bid US equity futures could potentially be related to the recent strength of the quotation.

 

However, as recently hinted by Finance Minister Shunichi Suzuki, forthcoming market action by Japanese officials appears to present a problem for GBP/JPY purchasers, according to Jiji Press. The Bank of England's (BOE) most recent setbacks and a cautious view ahead of the UK's monthly data dump could possibly be weighing on the pair.

 

By emphasizing the Financial Policy Committee's (FPC) decision to interfere in the financial market after noting that market volatility exceeded the bank stress test, BOE Governor Andrew Bailey's late-Tuesday statement increased the risk-averse attitude. The similar pattern was followed when the BOE expanded its gilt operation to include inflation-linked gilts for the remainder of its involvement (due to finish on 14 October, UK time).

 

Future monthly figures for the UK's Gross Domestic Product (GDP), which are expected to drop from 0.2% to 0.0% in August, will be combined with those for that month's Manufacturing Production and Industrial Production to affect the GBP/JPY exchange rate right away. The actions taken by Japanese policymakers to stop the JPY from weakening will be equally important.

 

The GBP/JPY pair is expected to weaken overall as a result of more pessimism in the United Kingdom than in Japan.