- The Japanese Yen, which has weakened dramatically over recent weeks and months, has begun to stabilize after the Bank of Japan reportedly conducted a rate check late in the Asian session yesterday to signal its preparation to intervene in favour of the Yen, after the USD/JPY currency pair rose very strongly to again approach close to the ¥145 level. Some market players are betting on a Yen rally, but many analysts think the Bank of Japan will be unable to halt the Yen’s eventual continued depreciation with the tools they are prepared to use.
- In the Forex market, the US Dollar remains strong following the release of US CPI (inflation) data on Tuesday which showed prices increased by 0.1% month-on-month when they had been expected to fall, creating an annualized rate of 8.3%, slightly down on last month’s 8.5% but higher than the 8.1% which had been expected. The 2-Year Treasury yield yesterday reached a new multi-year high at 3.83% and a deepening in the inverted yield curve.
- UK CPI (inflation) data released yesterday showed inflation a fraction lower than expected and dropping slightly, coming in at an annualized rate of 9.9%.
- Stock markets have mostly halted their falls, but still look generally weak.
- New Zealand GDP data came in much better than had been widely expected, showing an increase of 1.7% in the last quarter compared to a consensus forecast of 1%. The news had little effect upon the New Zealand Dollar.
- Australian unemployment data came in slightly worse than had been expected, with the unemployment rate increasing from 3.4% to 3.5%.
- There will be a releases of US retail sales data and the empire state manufacturing index today.
- The Swedish Prime Minister has resigned as counting is almost completed in Sweden, with results showing her left-wing coalition has failed to retain a majority in parliament. It is expected that a centre-right coalition will now take power.
- Daily new coronavirus cases globally dropped last week for the eighth consecutive week, giving rise to the hope that the pandemic is finally over in any meaningful sense.
- It is estimated that 67.9% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 7.8% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.
- Total confirmed new coronavirus cases worldwide stand at over 615.5 million with an average case fatality rate of 1.06%.
- The rate of new coronavirus infections appears to now be significantly increasing only in Taiwan and Russia.