Cross-Yen rises due to successive European Central Bank rate hikes and differences in the stance of the European and Japanese Central Banks
Europe’s consecutive interest rate hikes and the divergence in monetary policies between Japan and Europe have led to the appreciation of the yen crosses. During the early London session, the yen weakened as the dominant force in the yen crosses. On this day, the monetary policies of various European central banks are being announced. However, […]
Fed Chair Jerome Powell’s testimony to Congress in focus; pound sterling ahead of Bank of England tomorrow
Today, attention is focused on the congressional testimony of Powell, the chairman of the Federal Reserve (FRB). This semi-annual testimony takes place today in the House of Representatives and tomorrow in the Senate committee. It is expected that the emphasis will be on the stance of inflation containment. While a message stating that there is […]
Markets in an adjustment mood in the first half of the week
According to the market report, the beginning of this week has seen a broadening corrective mood in trading. Last week, the US Federal Open Market Committee (FOMC) and the European Central Bank (ECB) meetings resulted in a strengthening of selling pressure on the US dollar. Meanwhile, the Japanese yen weakened due to the Bank of […]
BOJ Decides to Continue Large-Scale Monetary Easing, Maintains Price Outlook
According to the Bank of Japan’s monetary policy decision on the 16th, they have decided to continue their current large-scale monetary easing policy centered around Yield Curve Control (YCC). There were no significant changes in their perception of the economy and prices. In a survey conducted by Bloomberg among 47 economists from the 1st to […]
A Week of Monetary Policy by Major Central Banks, Lack of Materials Over the Weekend to Set the Groundwork for Next Week
It has been a week filled with monetary policy decisions from major central banks, including the FOMC, ECB, and Bank of Japan. As expected, interest rates remained unchanged across the board. The US kept rates steady, the ECB implemented a 25 basis point rate hike, and the Bank of Japan signaled the continuation of […]
JPY on the brink of a widening US-Japan interest rate gap, but what about the ECB Council meeting?
The Japanese yen has weakened in the Tokyo market following the passage of yesterday’s US Federal Open Market Committee (FOMC) meeting. USD/JPY has reached the 141 yen level, which raises concerns about the government’s warning against excessive yen weakness. The FOMC meeting resulted in no change in policy interest rates as expected, but the indication […]
Reacting to dollar selling, U.S. PPI growth slower than expected
In response to the US Producer Price Index (PPI) for May, which came in lower than market expectations with a month-on-month decrease of -0.3% and a year-on-year increase of +1.1%, there has been a broadening reaction of USD selling, along with a decline in US bond yields. Continuing with the USD selling perspective.
Waiting for US FOMC, check out Chairman Powell’s press conference
Today, there is a focus on the US Federal Open Market Committee (FOMC). Following the release of the US Consumer Price Index (CPI) yesterday, over 90% of the market has already priced in a decision to keep rates unchanged in today’s meeting. However, given the resilience of the core index, rate hike expectations for […]
US Consumer Price Index: Headline figures lower than expected, Core exceeds expectations, causing volatility in the dollar market
The May US Consumer Price Index showed a slower-than-expected year-on-year increase in the headline figure, coming in at +4.0% compared to the previous +4.9%. On the other hand, the Core year-on-year figure decreased from the previous +5.5% to +5.3%, but still slightly surpassed market expectations. The mixed results led to rapid fluctuations in the […]
Passing through the US Consumer Price Index (CPI) and heading towards the FOMC, the focus will be on changes in July rate hike expectations.
Today, the highly anticipated US Consumer Price Index will be released. Slowing year-on-year growth is expected, which is likely to support the market’s expectation of the Fed keeping interest rates unchanged in the upcoming FOMC meeting. However, depending on the degree of deviation from market expectations, it could impact the strength of rate hike expectations […]