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On April 21, CNN reported that on April 20 local time, US President Trump stated in a phone interview that Iran "will negotiate" and expressed confidence in the potential talks to be held in Pakistan. Trump said, "They will negotiate, and if they dont, there will be unprecedented problems." He also expressed hope that the two sides could reach a "fair agreement" and emphasized that Iran "will not have nuclear weapons." He also defended military action against Iran, saying there was "no other choice," and that the "finishing touches" would eventually be completed.April 21 – Statistics New Zealand data shows that New Zealands first-quarter CPI rose 3.1% year-on-year, the same as the increase in the fourth quarter of last year, while economists had previously expected 2.9%. The CPI rose 0.9% month-on-month, higher than the expected 0.8%. New Zealands first-quarter inflation rate unexpectedly remained above the 1% to 3% target range before rising fuel and other costs due to the Iran war were expected to push the CPI up. The Reserve Bank of New Zealand initially estimates that the inflation rate will accelerate to 4.2% in the second quarter, while local economists expect the inflation rate to be even higher and remain above the target range until 2027. Faced with the risk that inflation could become deeply entrenched in the economy, the market widely expects the Reserve Bank of New Zealand to raise interest rates sooner than previously anticipated, with investors expecting the first rate hike as early as July.1. The three major U.S. stock indexes closed slightly lower. The Dow Jones Industrial Average fell 0.01% to 49,442.56 points, the S&P 500 fell 0.24% to 7,109.14 points, and the Nasdaq Composite fell 0.26% to 24,404.39 points. 3M fell more than 2%, and Procter & Gamble fell more than 1%, leading the decline in the Dow. The Wind U.S. Tech Big Seven Index fell 0.6%, with Facebook and Tesla falling more than 2%. The Nasdaq China Golden Dragon Index fell 0.32%, Zai Lab rose more than 4%, and Hesai Technology fell nearly 6%. 2. The three major European stock indexes all closed lower. The German DAX fell 1.15% to 24,417.8 points, the French CAC40 fell 1.12% to 8,331.05 points, and the UK FTSE 100 fell 0.55% to 10,609.08 points. 3. International precious metals futures generally closed lower. COMEX gold futures fell 0.79% to $4,841.00 per ounce, and COMEX silver futures fell 2.41% to $79.87 per ounce. 4. The WTI crude oil futures contract closed up 4.0% at $85.89 per barrel; the Brent crude oil futures contract rose 3.78% to $93.8 per barrel.April 21 - According to NBC News on April 20, the United States is expected to deploy three carrier strike groups simultaneously in the Middle East in the coming days. The report states that the USS Abraham Lincoln carrier strike group is currently deployed in the Gulf of Oman, near the Strait of Hormuz, participating in maritime blockade operations; the USS Ford carrier strike group is located in the northern Red Sea; and the USS George H.W. Bush carrier strike group, which has chosen to detour around Africa, is heading north from southeast Africa and is expected to enter the Arabian Sea—this carrier may replace the USS Ford in its mission, but in the short term, the US military may have three carrier strike groups deployed simultaneously in the Middle East.On April 21, the Ministry of State Security issued a security alert. Recently, a hidden industry chain involving AI "poisoning" has been exposed, drawing widespread public attention. This behavior of maliciously contaminating AI models not only disrupts business order and affects information dissemination, but also endangers national security. While artificial intelligence empowers various industries, its security risks cannot be ignored. Promoting ethical AI governance and safeguarding data security are not only industry responsibilities but also require the participation of the entire society.

As BoJ Udea Mentions the Appropriateness of Current Monetary Policy, EUR/JPY Exhibits a V-Shaped Movement

Daniel Rogers

Feb 24, 2023 14:30

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When Kazuo Ueda, the nominee for Governor of the Bank of Japan (BoJ), addresses the Japanese parliament, the EUR/JPY currency pair exhibits a V-shaped movement. The commentary of Haruhiko Kuroda's successor as Governor of the Bank of Japan has increased the volatility of the Japanese Yen.

 

As he describes the current monetary policy as appropriate and necessary to sustain 2% inflation, BoJ Ueda's speech appears more diplomatic. Moreover, he stated that rising import prices are the cause of Japan's rising inflation. Domestic demand is still insufficient, but the central bank is attempting to achieve pre-pandemic growth rates. The neighborhood has descended into lunacy as a result of his speech's absence of Yield conversion control (YCC) discussions.

 

Despite current discussions about the expansion of the YCC, the economic outlook for the Japanese Yen is positive, as the Bank of Japan is working to increase labor costs, which will confidently support a revival in overall demand.

 

Nordea economists continue to be optimistic about the Japanese Yen: "We remain fairly sanguine on JPY due to our expectations of a change in Bank of Japan monetary policy later this year." According to a note from Nordea, the time is ripe for a normalization of the Bank of Japan's stimulative monetary policy, "with inflation reaching its highest level in decades and a prognosis for higher wage growth."

 

Despite the easing of inflationary pressures, investors are concerned that the normalization of the Eurozone economy will take a significant amount of time. In order to maintain a ceiling on the price index, the European Central Bank (ECB) is anticipated to continue raising interest rates.