EUR/USD 1.12205
-0.153%
Gold 4180.15
0.274%
Oil 97.131
-1.710%
USD/JPY 158.132
0.089%
GBP/USD 1.33251
-0.020%
GBP/JPY 210.717
0.069%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Jefferies: Lowered its price target for Reddit from $225 to $200.October 19th - According to the Financial Times, US stocks are expected to open higher on Monday, following their biggest weekly drop since Trump announced tariffs last April. During Asian trading hours, Nasdaq 100 futures, dominated by technology stocks, rose 1.3%, and S&P 500 futures rose 0.8%. Analysts noted that investors are currently reassessing the market situation after Fridays sell-off triggered by concerns about widening credit spreads for AI data center companies. This easing of sentiment also supported Asian markets. South Koreas KOSPI index rose 0.5% on Monday after falling 11% last week. Prashant Bayani, BNP Paribas chief investment officer for Asia, said, "We saw a rebound because there was no substantial escalation of the conflict with Iran over the weekend." Bayani added that traders were taking a wait-and-see approach to AI-related trades after last weeks "de-risking" operations. Japans TOPIX index fell nearly 1% in early trading on Monday but recovered in the afternoon, ending the day essentially flat. The Nikkei 225 index, which is dominated by technology stocks, fell 0.7%.October 19th - According to the Financial Times, amid an increasingly challenging economic environment, some Australian companies are choosing to sell assets, while foreign buyers are seizing the opportunity to acquire these bargain-hunting assets. As a result, three large Australian listed companies are about to be delisted from the public market. On Monday, Swedish private equity firm EQT agreed to acquire Australian waste management company Cleanaway, valuing the company at A$9.3 billion (approximately US$6.5 billion), including A$2.3 billion in debt. Meanwhile, Japans Dai-ichi Life Insurance, after acquiring more than 20% of Australian investment management and retirement income company Challenger Group last year, has made a full takeover bid totaling nearly A$8 billion. On Monday, a third acquisition was also finalized: Fleet Partners agreed to accept SG Fleets acquisition for A$1.1 billion. Recently, Australian listed assets have been highly sought after, with frequent mergers and acquisitions. In addition to the aforementioned companies, pipeline systems company Reliance Worldwide and insurance brokerage firm Steadfast have also agreed to accept multi-billion dollar takeover bids from foreign funds.Jefferies: Lowered its target price for 3M from $191 to $187.October 19th - A US investor with ties to the Trump administration and born in the former Soviet Union plans to expand his copper mine investment in Armenia. He is betting on broader opening up of the region as Washington seeks to strengthen its economic presence there. "The peace memorandum signed between Armenia and Azerbaijan is a once-in-a-lifetime transformative event for the region," said Konstantin Sokolov, who acquired Armenias second-largest copper producer last September. "I have a strong interest in expanding throughout the region because I firmly believe in its enormous potential."

USDJPY rises 1.0% to offset US inflation-driven fall above 142.00; US Michigan CSI expected

Alina Haynes

Nov 11, 2022 17:57

截屏2022-11-11 下午1.36.22.png

 

During the Asian session on Friday, USDJPY bounces at the intraday high near 142.50 as it consolidates the worst daily decline since October 1998. In doing so, the yen pair takes signals from the market's slightly bearish sentiment and the lack of movement in US Treasury yields during the day.

 

Nonetheless, fears of coronavirus return as Beijing, China reports the highest daily spike in covid infections in over a year. For the first time in seven months, the number of daily coronavirus cases exceeded 10,000 at the national level. Aside from this, 10-year US Treasury rates remain quiet near the monthly low near 3.81%, which was flashed on Thursday after the sharpest decrease since the start of December 2021.

 

Bond market inaction may be related to U.S. and Canadian bank holidays, as well as the market's demand for greater confirmation of the Federal Reserve's decision to suspend rate hikes (Fed).

 

It should be highlighted that increased fears of Japan's involvement in the currency market to defend the yen, the Bank of Japan's (BOJ) defense of the cheap money policy, and optimism for an economic recovery in the next years all contribute to the USDJPY resurgence.

 

Thursday, the US Consumer Price Index (CPI) for October surprised markets by slipping to 7.7% YoY, the lowest level since March of last year, compared to forecasts of 8.0% and a previous reading of 8.2%. Importantly, the Core CPI fell to 6.3% from 6.5% and earlier readings of 6.6%.

 

The president of the Dallas Federal Reserve, Lorie Logan, indicated that the October CPI inflation report is a welcome respite and that it may soon be time to slow the rate of rate hikes. Patrick Harker, president of the Federal Reserve Bank of Philadelphia, told Reuters on Thursday that the US Federal Reserve may slow its rate hikes in the coming months. Esther George, president of the Federal Reserve Bank of Kansas City, Loretta Mester, president of the Federal Reserve Bank of Cleveland, and Mary Daly, president of the Federal Reserve Bank of San Francisco, have all recently advocated for moderate rate hikes at upcoming meetings.

 

As a result, the CME's FedWatch Tool shows an 80% chance of a 50 basis point (bps) rate hike in December, up from about 55% shortly after the Fed's meeting last week.

 

Given recent forecasts for an easy Fed rate hike in December and the BOJ's preference for dovish monetary policies, the USDJPY pair is likely to continue falling. The initial readings of the US Michigan Consumer Sentiment Index (CSI) for November, which is expected to be 59.5 compared to 59.9 in October, will precede the meeting between US President Joe Biden and Japan's Prime Minister (PM) Fumio Kishida on Sunday in order to provide clear direction.

 

Due to the oversold RSI conditions, USDJPY bears are challenged by an ascending support line from early March and the 100-day moving average (DMA) in the vicinity of 141.00-140.85. The comeback must surpass the late-October swing low of 145.10 to impress buyers.

Suggestion