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Reserve Bank of Australia Governor Bullock will hold a monetary policy press conference in ten minutes.June 16 – The 68th meeting of the Standing Committee of the 14th National Peoples Congress (NPC) was held on the morning of June 16 at the Great Hall of the People in Beijing. Chairman Zhao Leji presided over the meeting. The meeting decided that the 23rd session of the Standing Committee of the 14th NPC will be held in Beijing from June 23 to 26. The meeting recommended that the 23rd session of the Standing Committee of the 14th NPC deliberate on the State Councils proposals regarding the draft revisions to the Bidding and Tendering Law, the draft Financial Law, the draft revisions to the Law of the Peoples Bank of China, and the draft decision authorizing the Hong Kong Special Administrative Region to exercise jurisdiction over the Hong Kong side of the Huanggang Port and related extended areas.The yield on Japans 5-year government bonds rose 5 basis points to 1.915%.The Central Bank of Ukraine projects foreign aid of $53 billion this year, $42 billion in 2027, and $22 billion in 2028.On June 16th, Takashi Fujiwara, Chief Fund Manager at Resona Asset Management, stated that the Bank of Japans (BOJ) statement explicitly indicated that short- and medium-term real interest rates are negative. This could mean the BOJ does not want ultra-long-term bond yields to rise further. Simultaneously, this could also be a signal from the BOJ that if short- and medium-term interest rates remain low, businesses can easily raise funds and potentially expand into higher-risk sectors. The BOJ discussed the economy and prices side-by-side in its statement. This could indicate the BOJs willingness to raise interest rates further. Even if the opening of the Strait of Hormuz slows price increases, the BOJ can still use economic growth as justification for raising interest rates.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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