Tag Archives: Japanese yen

The Japanese yen has hit its lowest level since 1990

The Japanese yen has hit its lowest level since 1990. This significant drop in the yen’s value marks a notable point in Japan’s economic landscape,
reflecting various domestic and international financial dynamics,
including policy decisions by the Bank of Japan and global market trends.

 

Topics

Decrease in the value of the yen

Japan’s negative interest rates

 

 

Decrease in the value of the Yen.

The Japanese yen has reached its lowest level since 1990, falling against the U.S. dollar to a 34-year low.
This has increased speculation about Japan intensifying its efforts to slow the currency’s decline.
The yen fell 0.3% against the dollar, surpassing the 151.95 level reached in October 2022,
a point that previously prompted intervention from Japan’s currency officials
who have issued stern warnings to foreign exchange speculators in recent months.

Masato Kanda, Japan’s Vice Finance Minister for International Affairs,
stated in a press release that the current yen depreciation does not
align with economic fundamentals and is speculation-driven.
He emphasised that Japan would take necessary measures against excessive market volatility,
leaving all options on the table.

 

Japan’s negative interest rates

Regarding Japan’s negative interest rates, investors anticipate that the interest rate
differentials between Japan and other advanced economies, especially the United States,
will remain significant even though the Bank of Japan has moved away from negative interest rates.
Until this policy shift, the Bank of Japan was the last institution globally maintaining sub-zero interest rates,
a factor that constrained the yen’s appreciation as investors sought higher yields from other currencies.

Bank of Japan Governor Kazuo Ueda has reiterated that the bank’s accommodative monetary policy will continue for now.
His comments further highlight the widening gap between Japan’s interest rates and those in the United States.
Following the Bank of Japan’s historic decision to abandon negative interest rates
on March 19, 62% of 47 analysts in a survey expected another interest rate
hike by the central bank by next October.
However, there was a variance in opinions regarding the timing of this move.

In 2022, Japan spent over 9 trillion yen ($59.3 billion) on three market interventions in September and October
to support the yen, with the first intervention occurring when the yen was significantly stronger than its current value.

 

The Japanese yen has hit its lowest level since 1990

Continued Rise in Gold Prices

Continued Rise in Gold Prices: Gold prices remained near a two-month high during Monday’s trading,
following the release of economic data related to the US economy last week.
This strengthens the likelihood of the Federal Reserve cutting interest rates in June.

 

Topics
Continued Rise in Gold Prices

OPEC+ Decisions to Extend Production Cuts Lead Oil Higher

Yen Hovers Around 150.00 Levels Awaiting Bank of Japan Governor’s Speech

Continued Rise in Gold Prices

Gold prices remained near a two-month high during Monday’s trading,
following the release of economic data related to the US economy last week.
This strengthens the likelihood of the Federal Reserve cutting interest rates in June.
The main factors affecting gold prices are developments in interest rates.
Prices moved upwards on Friday due to a series of overall economic data released in the United States,
encouraging the Fed to cut interest rates sooner than expected.

Gold prices rose by about $50 during the past week,
as price pressures eased according to the preferred inflation index
of the Federal Reserve and the US consumer confidence index.

 

OPEC+ Decisions to Extend Production Cuts Lead Oil Higher:

Oil prices witnessed an increase on Monday following OPEC+ member country’s
agreement to extend voluntary production cuts by 2.2 million barrels per day
during the second quarter of the year. This decision is in line with market expectations.

Brent crude futures rose by 28 cents or 0.3% to $83.83 per barrel,
while West Texas Intermediate crude futures rose by 20 cents or 0.3% to $80.17 per barrel.

These production cuts are expected to provide support to the oil
market amidst global economic concerns and increased production outside the OPEC+ group.
Russia’s announcement of additional export and production cuts surprised some analysts.

Oil prices received support in 2024 from escalating geopolitical tensions,
with increased Houthi attacks on commercial vessels in the Red Sea.
However, concerns about economic growth continue to cast shadows over the market.

 

 

 

Yen Hovers Around 150.00 Levels Awaiting Bank of Japan Governor’s Speech

 

The Japanese yen declined in Asian markets on Monday against a basket of global currencies,
continuing its losses for the second consecutive day against the US dollar
and moving away from its highest level in two weeks, amidst ongoing correction and profit-taking.

The yen is trading around a crucial level of 150 yen to the dollar,
with markets awaiting an important speech by Bank of Japan Governor Kazuo Ouda
on inflation developments in the country and the future of negative interest rates.

The dollar rose against the yen by about 0.2% to 150.21 yen,
from the opening price at the start of the day at 149.96 yen, and recorded its lowest level at 149.84 yen.

The yen lost about 0.1% against the dollar at the end of trading on Friday,
amidst correction and profit-taking, after hitting its highest level in two weeks the previous day at 149.20 yen.

Last week, the Japanese yen rose by 0.3% against the US dollar,
marking its first weekly gain in the past five weeks,
and the largest weekly gain in 2024 since late December 2023.

This weekly increase is a result of strong statements by a member
of the Bank of Japan’s monetary policy committee,
in addition to the decline in the yield of US ten-year Treasury bonds.

 

Continued Rise in Gold Prices

Gold Prices Rise and Oil continues to rise

Gold Prices Rise and Oil continues to rise: Gold prices have risen despite the increase in the value of the dollar.
Meanwhile, the value of the Japanese yen has declined,
and oil continues to rise due to ongoing tensions in the Middle East.

 

Topics

Gold prices rise ahead of Federal Reserve meeting tomorrow

Yen falls after rise in US bond yields

Oil continues to rise due to ongoing tensions in the Middle East

 

 

 

Gold prices rise ahead of Federal Reserve meeting tomorrow:

Gold prices rose during Tuesday’s trading session,
despite the increase in the value of the dollar and Treasury bond yields.
This improvement comes amid investors’ anticipation
of the minutes from the recent meeting of the Federal Reserve,
as they seek more information about the timing of interest rate cuts.

In another context, the dollar index recorded a 0.1% increase,
and yields on 10-year US Treasury bonds rose to nearly 4%.
This makes gold, which is priced in US dollars, less attractive to foreign investors.

With a lack of market-affecting news, volatility will be limited across all markets.
It is unlikely that the minutes of the Federal Open Market Committee meeting
will have a significant impact, as Federal Reserve members have clearly expressed their positions.
Since the meeting took place before the recent inflation announcements,
technical factors will be the main driver of gold price movements soon.

The minutes of the Federal Reserve’s monetary policy meeting
for January is expected to be released on Wednesday.

 

 

 

Yen falls after a rise in US bond yields

Asian markets witnessed a decline in the value of the Japanese yen
on Tuesday against major and secondary currencies.
The yen resumed its losses against the US dollar,
falling again below the 150 yen per dollar level, due to the current rise in yields on 10-year US Treasury bonds.

This decline comes despite statements from the Japanese finance minister
regarding intensified monitoring of local currency movements in the foreign exchange market,
as a last-ditch attempt to support the yen amid sharp declines.

The exchange rate of the dollar against the Japanese yen rose by 0.15% to reach 150.37 yen,
compared to the daily opening rate of 150.11 yen, and recorded a low of 150.07 yen.

In the previous session, the Japanese yen gained 0.1% against the US dollar,
after falling by 0.2% in the previous session and approaching a three-month low of 150.88 yen per dollar.

 

Oil continues to rise due to ongoing tensions in the Middle East

Oil prices saw little change in early Asian trading on Tuesday,
remaining near their highest levels in three weeks thanks to escalating tensions in the Middle East and increased Chinese demand.

Brent crude futures fell eight cents to $83.48 a barrel,
while US West Texas Intermediate crude for April delivery fell ten cents to $78.36 a barrel.

West Texas Intermediate crude for March delivery rose 26 cents to $79.45 a barrel,
as traders expected this contract to expire later in the day.

The Houthis continued their attacks on shipping lanes in the Red Sea and the Bab el-Mandeb Strait,
with at least four ships targeted by drone strikes and missiles since Friday.
The Houthis reported that one of these ships was at risk of sinking in the Gulf of Aden,
increasing the risks associated with their campaign to disrupt global shipping in solidarity with the Palestinians in Gaza.

 

Gold Prices Rise and Oil continues to rise

Oil Futures Steady After Strong Losses Last Week

Oil Futures Steady After Strong Losses Last Week: West Texas Intermediate crude futures settled above $72 a barrel on Monday
after sharp declines last week as investors continued to monitor developments in the Middle Eas

 

Topics

Gold Continues Decline After Strong US Jobs Data
Oil Futures Steady After Strong Losses Last Week
Japanese Yen at Its Lowest Levels in Over Two Months

 

 

 

Gold Continues Decline After Strong US Jobs Data

Gold continued its decline to $2023 per ounce on Monday, extending losses from the previous session,
as strong US economic data and strict signals
from the Federal Reserve affected sentiment regarding interest rate cuts.
Friday’s data showed that the US economy added 353,000 jobs in January,
far exceeding market expectations of 180,000.
Federal Reserve Chairman Jerome Powell also pledged in an interview with “60 Minutes” aired on Sunday
that the central bank would proceed cautiously with interest rate cuts this year
and wait for more evidence that inflation is sustainably moving toward 2%.
He added that the Federal Reserve is likely to move much more slowly than the market expects.
Traders have now reduced their bets on a rate cut in March to only 20% and see a total easing of around 137 basis points this year,
down from 150 basis points at the end of last year.

 

Oil Futures Steady After Strong Losses Last Week

West Texas Intermediate crude futures settled above $72 a barrel on Monday
after sharp declines last week as investors continued to monitor developments in the Middle East.
Oil prices fell by more than 7% last week as progress in ceasefire negotiations between Israel and Hamas
eased concerns about supply disruptions from the region.
Fading expectations of immediate rate cuts by the US Federal Reserve and ongoing concerns
about economic recovery in China also impacted global demand outlooks.
Meanwhile, the United States announced it would carry out further military action against the Houthi group,
increasing tensions in the Middle East despite its insistence that it does not seek broader conflict in the region.

 

 

Japanese Yen at Lowest Levels in Over Two Months

The Japanese yen fell to over 148 yen to the dollar, reaching its lowest levels in over two months,
as stronger-than-expected US jobs report and Federal Reserve Chairman Jerome Powell’s dismissal
of early US interest rate cuts this year dashed hopes.
Powell pledged in an interview with “60 Minutes” aired on Sunday that the central bank
would proceed cautiously with interest rate cuts this year
and wait for more evidence that inflation is sustainably moving toward 2%.
He added that the Federal Reserve is likely to move much more slowly than the market expects.
At the same time, markets remain divided over whether the Bank of Japan will end its negative interest rate policy this year,
with the timing of such a decision continuing to be delayed due to recent data indicating ongoing economic challenges domestically.
Manufacturing activity remains weak while consumer spending grows less than expected.

 

Oil Futures Steady After Strong Losses Last Week

 

Bitcoin Declines Below $40,000

Bitcoin Declines Below $40,000: The value of Bitcoin has fallen by nearly 20% since the launch of exchange-traded funds that invest directly in the cryptocurrency on January 11.
This decline led to speculators becoming more wary of the effects of these products.
The value of the digital currency rose to $49,021 on the day of the launch of ETFs by BlackRock and Fidelity, then fell to $39,718, a 19% drop from the daily peak. 

Content

Bitcoin funds

Oil prices

The Bank of Japan

 

Bitcoin funds

Nine spot Btcoini funds began trading on January 11 and the Gray Sunkill Bitcoin Trust was converted into an exchange-traded fund.
A net inflow of $1.2 billion was recorded into these funds in the first six days.
According to Bloomberg Intelligence analysts, iShares Bitcoin Trust and FidelityWise Origin Bitcoin Fund had the highest inflows,
while $2.8 billion exited from Gray Sunkill.

In light of global economic challenges, the value of Bitcoin was affected by the rise in interest,
the strength of the dollar, and the pressures of selling “GBTC,” in addition to selling “FTX” assets.
It is expected that the selling pressure from GBTC will decrease in the coming period.

Bitcoin’s value has fallen by nearly 160% over the past year, but it still outperforms traditional assets.
Despite their decline at the beginning of this year,
optimism remains about the power of ETFs to stimulate wider adoption of cryptocurrencies.

Oil prices are clearly rising at the beginning of the week’s trading.

Oil prices rose 2% at the close of Monday due to Ukraine’s attack on a Russian gas station,
which further heightened geopolitical tensions and raised fears of supply disruptions and weak supply chains.

February crude oil contracts rose by $1.78 (2.42%) to $75.19 per barrel,
while the March Brent contract settlement price rose by 1.91% to $80.06 per barrel.

Last week, the International Energy Agency raised its forecast for global demand in 2024,
but its forecast is less than half that of the OPEC producer group.

The agency said that barring significant disruptions in flows, the market looks reasonably good in 2024.

Oil is struggling to determine a clear direction this year despite multiple geopolitical tensions,
and the Organization of the Petroleum Exporting Countries (OPEC) has pledged to reduce production.

Oil gains were offset by indications of abundant production outside OPEC, as the International Energy Agency expected an abundance of supplies.
In addition, Libya has resumed flows from its largest fields after they were halted,
and American drilling companies are recovering from the freeze that harmed operations.

Oil prices maintained their gains, however, after the United States and the United Kingdom carried out a new round of strikes against the Houthis in Yemen,
inflaming tensions in the Middle East and offsetting fears of a continued global supply glut.



 

 

The Bank of Japan maintains interest rates and pushes the yen to fall again.

Bank of Japan kept monetary policy unchanged while adjusting its economic forecasts,
but without giving any clear hints about the possible timing of moving away from negative interest rates, which led to a decline in the yen price.

The Bank of Japan kept the short-term interest rate at -0.1% and continued to control the yield curve after the end of its two-day meeting,
according to a statement published on Tuesday.

On the other hand, during its quarterly forecast report,
the bank lowered its inflation estimates for the fiscal year that begins in April to 2.4% instead of 2.8% previously.
This means that consumer price increases will continue to exceed the 2% target set by the Central Bank for a longer period,
after exceeding this level since April 2022.

The yen fell against the dollar immediately after the announcement,
briefly reaching 148.55 yen to the dollar before recovering all its losses and reaching 147.86.
The yield on 10-year government debt also fell to 0.635%.

At the press conference after the Monetary Policy Committee’s statement,
Bank of Japan Governor Kazuo Ueda gave a comprehensive overview of the economic situation.

He pointed out the increasing possibility of achieving the inflation target of 2% and expected the economy to continue to grow and recover. 
stressing the importance of monitoring the impact of the foreign exchange market on prices
and the bank’s readiness to strengthen the monetary easing policy if necessary.

He praised the improvement in conditions thanks to the wage increase and monitored the results of the spring wage negotiations.
The bank has been studying the good cycle between wages and prices but noted that uncertainty remains about the spread of wage increases.

 

 

Bitcoin declines below $40,000

The last market updates

The last important market updates: Weekend full of important economic events, and market volatility.
with Evest report you will never miss these economic events or miss the Earning season and the stock Movement

Topic
Commodities update
Japanese yen
Stocks
Earning Season
Economic Calendar  Events

 

 

Commodities update

Gold 
Gold rose toward $2,040 an ounce on Thursday, recouping losses from the previous session amid
firm expectations that the US Federal Reserve will start cutting interest rates next year

Oil
WTI crude futures fell below $74 per barrel on Thursday, snapping a six-day advance as a surprise build in US crude
inventories overshadowed concerns about supply disruptions in the Middle East.

 

Japanese Yen

The Japanese yen trades at around 143 per dollar, 
BOJ disappointed markets when it kept ultra-low interest rates in place
and made no comments about possible adjustments towards policy normalization next year. 

 

Stocks

Coke: Coca-Cola Hits 4-week Low
GE: General Electric Hits Near 6-year High
CAT: Caterpillar Hits All-time High
SIE: Siemens Hits All-time High

 

Earning Season

Nike 21.12.23
CarMax  21.12.23
Carnival 21.12.23 

 

Economic Calendar Events

Thursday, December 21 2023
GDP Growth Rate QoQ Final – USA 
 Friday, December 22 2023
Inflation Rate YoY – JPY
Retail Sales MoM – GBP

GDP (QoQ) – USD 

The last important market updates

The Japanese yen fell after BOJ decision to keep the ultra-easy policy


The Japanese yen fell after the Bank of Japan’s decision to keep the ultra-easy policy:
The yen fell as a result of the Bank of Japan’s decision to keep its tight monetary policy. 

The Japanese Yen fell by 0.5%, while Asian stocks saw no change.
The bank’s decision to keep the interest rate at -0.1% came amid speculation
that the bank would cancel its tight monetary policy, and according to a Bloomberg poll,
experts believe that next April is the best time to make a change in the bank’s policy.
Both the dollar and the euro rose 1% against the yen,
and each is preparing to achieve the largest daily gain since the end of October,
with the US currency reaching 144.27 yen, and the common currency 157.68.

 

Content
Japanese Topix index
Chinese economy
Australian shares
American market
Rate cuts in the United States
Market news

 

Japanese Topix index

The Japanese Topix index (Tokyo Stock Price Index)showed that steel is the sector with the most losses.
Nippon Steel fell by more than 6% after it announced its purchase of United States Steel for $14.1 billion.
This deal would create the largest steel company in China the second largest in the world,
and the largest supplier to American automakers and manufacturers.

 

Chinese economy

As for the Chinese economy, it is still in the recovery phase.
Weak development continues to affect the economic recovery.

The value of Country Garden Services reached its lowest level after it declared some of its funds as losses.
As for China South City, which is partly owned by the southern city of Shenzhen,
it had previously warned of its inability to make the interest payment due on Wednesday,
which may affect its ability to repay loans.

It is also expected that the Chinese CSI 300 index will suffer an annual loss for the third year in a row,
and the index has declined by more than 13% this year.

 

Australian shares

As for the Australian market, Australian stocks rose,
while American contracts had a small rate of change,
while Wall Street continued to rise since Monday due to a large number of transactions,
and traders ignored all warnings from Federal Reserve officials regarding monetary easing. As for the Nasdaq 100 index,
it continued its rise, achieving record gains for the second session in a row.

 

 

American market

The S&P 500 index has maintained its rise for seven weeks,
and it cannot be determined whether the index will maintain its pace of rise for the eighth week.
While interest on two-year bonds rose by 4.5%, ten-year bond yields also reached 4%,
while Treasury bonds in Japanese transactions were stable while the dollar index fell.

Marko Kolanovic, a strategist at JP Morgan, expects a decline in inflation and economic demand data for 2024,
which will allow the Federal Reserve Bank to start cutting interest rates by 25 basis points at each meeting in the middle of the year.

 

Rate cuts in the United States

The President of the Federal Reserve Bank of Chicago, Austin Goolsbee,
the President of the Federal Reserve Bank of Cleveland, Loretta  Mester,
joined the group of central bank presidents who wanted to reduce optimism in the market
regarding everything related to the issue of reducing the interest rate, and at the same time,
it was confirmed that talk about reducing Interest in March was premature.

 

Market news

Lithium giant SQM has purchased Azure Minerals for $1.1 billion in partnership with the richest Australian woman.

As for gold, it stabilized on Monday, while oil approached its highest price in two weeks
after many companies decided not to cross the Red Sea following the increase in Houthi attacks on ships in the main shipping channel.

The Japanese yen fell after the Bank of Japan’s decision to keep the ultra-easy policy

Asian stocks rise ahead of the US inflation Rate

Asian stocks rise ahead of the US inflation Rate: Ahead of the U.S. inflation update and a Federal Reserve decision on interest rates and the possibility of reducing them next year, Asian stock futures rose.

 

Topics

A week full of economic events

Asian markets
US Consumer Price Index

Japanese yen rebound

 

 

A week full of economic events

Today, Tuesday, the consumer price index in the United States will be announced,
which is expected to give Wall Street a sense of whether the deflation is continuing.
This is one day before the Federal Reserve’s last scheduled decision for the current year,
with high expectations for officials to maintain interest rates and announce a summary of economic expectations.
Here, the question arises about the Fed’s intention to ease policy expectations after aggressive investor repricing.

Charo Chanana, market strategist at Saxo Markets, said,
“If the CPI and Fed data confirm no rise in interest rates, this week could be the best for Asian markets.”
“It may also be key as participants want to pressure monetary, fiscal, and industrial policies to achieve the 2024 growth target.”

 

Asian markets

With the opening of Asian markets, stocks witnessed a rise. In contrast, stock indices in Hong Kong achieved profits,
as investors followed the meeting of economic policymakers in China to learn about its results,
which may indicate the size of the expected stimulus next year. While US stock futures were flat.

The MSCI Asia-Pacific Index was flat for two days.
Technology stocks were the best performers after the gains achieved by
their American counterparts pushed the Philadelphia Semiconductor Index to its highest closing level since January 2022.

China’s 2023 Central Economic Work Conference is set to conclude its work today,
Tuesday, with the meeting expected to release its conclusions.about the importance of a more proactive role in fiscal policy,
and it also includes more early financing of financing
and strengthening implementation to improve the effectiveness of policies.

 

 

 

US Consumer Price Index

 

The US Consumer Price Index is expected to stabilize at 0% due to the decline in energy prices,
with the monthly core inflation rate at 0.3%, according to economists.
In a survey conducted by 22V Research,
it was found that about 46% of the survey participants believed that
the opening price index will not have an impact on the market reaction,
and 28% are betting on a “risk off” event, and only 26% see a “risk off” response.

“The sharp decline in short-term inflation expectations was due to the recent decline in energy prices,”
said Anna Wong and Stuart Paul of Bloomberg Economics.
“This allows the Fed to consider rate cuts as downside risks
to activity and upside inflation risks become more balanced.”

 

Japanese yen rebound

Meanwhile, the yen rebounded from its biggest decline in more than a month on Monday
due to a report from the Bank of Japan that they saw no need to rush to eliminate negative interest rates.
The sale of five-year Japanese government bonds was achieved at a higher price than expected,
Indicates significant demand as speculation subsides
the Bank of Japan’s possible exit from the negative interest rate regime.

Producer prices in Japan fell in November to their lowest level in three years,
underscoring the Bank of Japan’s view that inflationary pressures are moderating.

“USD/JPY pared much of its December 7 decline,
“Bearish positions are easing as traders reassess earlier optimistic forecasts that may have been exaggerated.”
said Jun Rong Yip, market analyst at IG Asia Pte.
“This comes as Bank of Japan officials continue to seek condemnation
on the requirement for wage growth to be confident of meeting ‘sustainable inflation’ as the policy focus.