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The Brazilian government announced that it will extend gasoline subsidies until September 9th, local time.On August 25th, according to Russian sources, a Ukrainian drone attack injured two workers at the Zaporizhia nuclear power plant. The plants press office reported that the attack occurred near the plants hydraulic structures while workers in the maintenance and construction workshop were working. The report did not specify the exact time of the attack. It is understood that the target of the attack was personnel responsible for ensuring the operation of the nuclear power plant. Both injured workers have been hospitalized, one seriously. The power plant stated that it has informed experts from the International Atomic Energy Agency (IAEA) about the attack. Ukraine has not yet responded to this report.U.S. Treasury yields continued to decline, with the 10-year yield falling 6 basis points to 4.64%.The German DAX 30 index closed up 155.76 points, or 0.60%, at 26,274.75 on Tuesday, August 25; the UK FTSE 100 index closed up 33.60 points, or 0.31%, at 10,887.92 on Tuesday, August 25; and the French CAC 40 index closed down 13.81 points, or 0.16%, at 8,439.20 on Tuesday, August 25. The Stoxx 50 index closed up 10.77 points, or 0.17%, at 6458.75 on Tuesday, August 25; the Spanish IBEX 35 index closed down 33.01 points, or 0.16%, at 20065.59 on Tuesday, August 25; and the Italian FTSE MIB index closed up 209.82 points, or 0.40%, at 52752.00 on Tuesday, August 25.On August 25, a joint statement from Iran and Oman stated: "His Excellency Omani Foreign Minister Bousaidi, during a working visit to Iran, held constructive consultations with Iranian Foreign Minister Araqchi. The consultations focused on an issue of paramount importance to both countries: restoring safe navigation through the Strait of Hormuz while upholding their respective sovereignty and sovereign rights. Given the recent war and its disastrous consequences that have altered the current situation in the Strait, the two foreign ministers discussed a phased framework that can provide a practical and implementable foundation for moving the situation forward. The proposed framework includes establishing a temporary joint maritime passage through the Strait of Hormuz and agreeing to implement a joint mine-clearing project. Both sides will continue technical discussions with the aim of reaching an agreement on establishing a permanent maritime passage, future management of the Strait, and mechanisms for exchanging traffic management information and providing related maritime and security services. In this regard, both sides emphasized the need for joint dialogue with the littoral states of the Persian Gulf. They also stressed the necessity of adhering to applicable international law and respecting the sovereign rights of the littoral states."

The USD/JPY crosses the 135.00 mark as the DXY rises ahead of US inflation

Daniel Rogers

Aug 10, 2022 11:32

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The USD/JPY pair is climbing northward during the Asian session in an attempt to retake its two-week high at 135.58. The asset's price turned positive on Monday as a result of the abundance of bids that occurred near 134.50. The USD/JPY pair's two-day consolidated activity shows that market participants are anxiously awaiting the release of the US Consumer Price Index (CPI).

 

Investors expect a decrease in price pressures this time, thus the release of the US inflation report is crucial. The investment community is aware that the crisis between Russia and Ukraine sharply increased oil prices, which continued to be essential to pressures on global costs.

 

A more than 11% drop in oil prices in July contributed to the black gold's continued sluggishness and lowered inflation expectations. The market anticipates that the inflation rate will decrease from 9.1% to 8.7%. The core CPI, which does not include food and oil, is anticipated to increase to 6.1% from the previously announced 5.9%. It appears that the demand for durable goods is rapidly increasing again. The US dollar index (DXY) is currently aiming to surpass the 106.40 immediate barrier.

 

The yen bulls are circling Tokyo as a result of Japan's government reorganization. Finance Minister Shunichi Suzuki will probably remain in the cabinet after this week's reorganization by Japanese Prime Minister Fumio Kishida. All eyes will now be on the Japanese government's efforts to raise the labor cost index, which is essential for keeping inflation over 2%.