EUR/USD
1.14588
-0.039%
Gold
4290.14
0.615%
Oil
97.331
-0.153%
USD/JPY
156.079
-0.126%
GBP/USD
1.33713
-0.064%
GBP/JPY
208.705
-0.187%
Real-time News
On September 17th, Katherine Brooks, Head of Institutional Research, stated on Wednesday that the latest CPI data supports the Bank of Englands "hawkish pause." However, the real inflation shock may occur in September. Brooks noted that there are currently no signs that inflation is spreading to the broader economy. However, the inflation report showed that raw material costs rose 6.1% year-on-year, and producer prices rose 3.7%. These costs will either ultimately be passed on to already burdened consumers or squeeze corporate profit margins, both of which are detrimental to the UK economy. Brooks pointed out that stable core inflation is a positive sign, but the Bank of England has stated that energy prices now have a greater impact on inflation expectations than core inflation. Furthermore, persistently high energy price ceilings also pose an upside risk to future inflation. Brooks believes that although the market has lowered its expectations for near-term interest rate hikes by the Bank of England, future rate hikes cannot be ruled out; the market is currently pricing in approximately four rate hikes by the end of next year. Unless the war with Iran ends and supply constraints in the Middle East ease, the UK economy will continue to face long-term pressure for interest rate hikes.Japanese Chief Cabinet Secretary Minoru Kihara: We will continue to monitor the impact of the (interest rate hike) on the US economy and markets.Japanese Chief Cabinet Secretary Minoru Kihara: Japans stance on exchange rates has remained unchanged since the joint intervention by the United States and Japan.September 17th - Copper prices stabilized after traders downplayed hawkish signals from the Federal Reserve Chairman following the widely anticipated interest rate hike. Despite a stronger dollar, copper futures prices on the London Metal Exchange (LME) remained largely unchanged. Fed officials expect another rate hike later this year, which could put pressure on non-yielding assets like copper. Previously, copper prices had surged to record highs, driven by expectations of potential US tariffs on refined copper; currently, prices are consolidating at these high levels. The tariff expectations led to a large influx of copper into US inventories, raising concerns about potential supply shortages in other regions. So far, the US has not implemented any new trade measures, casting uncertainty on the previous rally. However, demand expectations in the data center and renewable energy sectors, as well as supply disruptions at major mines, continue to support copper prices. Sam Crittenden, an analyst at RBC Capital Markets, stated in a report: "News that the US will not impose tariffs on copper has cooled some speculative trading in the physical market. Despite short-term price weakness, the fundamentals remain positive."Japanese Health Minister Kenichiro Ueno is reportedly set to remain in his post during the cabinet reshuffle.
