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On April 4, the Yangtze River Delta Railway ushered in the peak of passenger flow during the Qingming Festival. It is expected to send 4.1 million passengers today, 365,000 more than the same period last year, an increase of about 9.8%, and is expected to set a new record for single-day passenger volume. This years Qingming Festival railway transportation will start from April 3 to 7. The Yangtze River Delta Railway is expected to send 17.6 million passengers in 5 days, with an average daily passenger flow of 3.52 million, a year-on-year increase of 6.8%.The yield on the two-year U.S. Treasury note fell to a six-month low of 3.6550% and was last at 3.6611%.On April 4, local time on April 3, U.S. Secretary of Health and Human Services Robert Kennedy Jr. said that about 20% of the layoffs in the Department of Government Efficiency were wrong and needed to be corrected. The U.S. Department of Health and Human Services laid off about 10,000 people on the 1st. Kennedy said that people who should not have been laid off were laid off, and the department is restoring their positions. Kennedy said that canceling the entire lead poisoning prevention and monitoring department of the Centers for Disease Control and Prevention was one of the mistakes. At present, it is unclear what other projects Kennedy may plan to restore.Bank of Japan Governor Kazuo Ueda: Will consider the impact of food costs on consumers.On April 4, local time on the 3rd, the automobile company Stellantis said that due to the impact of the US import automobile tariff policy, the company decided to lay off 900 employees in its five US factories and suspend production operations at two assembly plants in Canada and Mexico. Antonio Filosa, Chief Operating Officer of Stellantis Americas, said that the US factories that were laid off were powertrain and stamping parts factories, which produced spare parts for two assembly plants in Canada and Mexico. According to the plan, the assembly plant in Canada will stop production for two weeks, and the assembly plant in Toluca, Mexico will suspend production throughout April. Filosa said the company is "continuing to evaluate the medium- and long-term impact of tariffs on operations."

The USD/JPY advances somewhat above 134.00 as negative sentiment and Fed worries combine with rising interest rates

Daniel Rogers

Feb 20, 2023 11:18

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USD/JPY establishes an intraday high towards the middle of 134.00 as it gains bids to reverse the previous day's decline from a multi-day high on Monday morning. In doing so, the Yen pair reflects the broad US Dollar gain amid fairly gloomy sentiment and the US and Canadian vacations.

 

Nonetheless, geopolitical concerns about China, North Korea, and Russia have recently weighed on market sentiment, despite the short calendar and absence of US/Canadian traders restraining momentum.

 

North Korea fired two ballistic missiles toward Japan over the weekend, reviving concerns that the hermit kingdom is up to something that could endanger the global economy. This is partly owing to the fact that both rockets were classified as tactical nuclear assault weapons.

 

In a similar vein, the most recent meeting between US Secretary of State Antony Blinken and China's top diplomat Wang Yi did not appear to have repaired US-China relations. Possible cause is a comment by a Chinese envoy that the United States must change course and restore the damage caused to Sino-American ties by the indiscriminate use of force. Ambassador Linda Thomas-Greenfield, US representative to the United Nations, declared on Sunday that China would cross a "red line" if it opted to provide lethal military aid to Russia for its invasion of Ukraine.

 

Meanwhile, better-than-expected readings of the US Consumer Price Index (CPI) and Retail Sales followed earlier positive readings of employment and output statistics and raised US Treasury bond yields and the US Dollar. The hawkish Federal Reserve (Fed) views and the aforementioned risk-negative factors may be comparable.

 

Fed Governor Michelle Bowman recently observed, as reported by Reuters, "We are observing an abundance of contradictory economic data." As reported by Reuters, Thomas Barkin, president of the Richmond Federal Reserve, claimed that they are detecting some inflationary progress due to the normalization of demand.

 

It should be underlined that the mixed leaning for the Bank of Japan’s (BoJ) new monetary policy board and chatters of more inflation in Japan likely to place a floor under the Yen.

 

Among these trades, the S&P 500 Futures print small losses even as Wall Street closed neutral. It’s worth noting that the US 10-year Treasury bond yields jumped to the highest levels since early November in the last week and helped the DXY to register a three-week advance.

 

For forward, Japan’s National Core Inflation figures will join the second reading of the US fourth quarter (Q4) Gross Domestic Product to steer immediate USD/JPY fluctuations. Yet, the most attention will be paid to the Federal Open Market Committee (FOMC) Meeting Minutes.