Tue, March 19, 2024

Asian countries

South Korea

South Korea’s Corp Reform: A Battle Against the Discount

Quick Look South Korea introduces the Corporate Value-up Programme to mitigate the “Korea Discount” and stimulate stock market valuations. The National Pension Service (NPS), the world’s third-largest pension fund, awaits details to adjust asset allocation. Comparisons with Japan’s market reforms spotlight potential benefits and investor scepticism regarding South Korea’s approach. Legal leniency towards chaebols and …

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Dollar and the short-end U.S. yields surge - DXY

DXY Dips to 102.868: Inflation & Fed’s Future Moves

Quick Look The DXY Index recorded a minor decrease to 102.868, reflecting a -0.06% change. February’s CPI data aligns with expectations, showing a 0.4% increase month-on-month. Core inflation rates exceed forecasts, signalling stronger inflationary pressures. Federal Reserve’s potential rate cut in June sees a slight dip in probability, influencing Treasury yields. Technical indicators suggest a …

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Japan’s First Private Rocket Launch Ends in Explosion

Quick Look Space One’s Kairos rocket exploded shortly after launch from Wakayama Prefecture. The failed mission intended to place a government-commissioned Earth observation satellite into orbit. No injuries were reported; the explosion’s cause is under investigation. This incident marks a setback in Japan’s ambitious space exploration goals involving the private sector. Space One, backed by …

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Tether

Tether Halts $1.4M Scam; Cooperation With the FBI

Quick Look Tether freezes $1.4m USDT to aid U.S. law enforcement in a tech scam crackdown. Ethereum’s price surges as the Dencun upgrade approaches, promising reduced gas fees. Victims, mainly senior citizens, unknowingly got into transferring funds to protect against fake hacking alerts. Tether’s global cooperation led to freezing 800 million USDT tied to illegal …

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Wibest – Canadian Loonie: Canadian dollar bills.

USD/CAD Edges Up to 1.3484 Amid Economic Shifts

Quick Look USD/CAD closed at 1.3484, slightly above its opening price, amidst a fluctuating oil market. WTI oil was priced at $78.51, and gold stood at $2176.72, reflecting commodity market movements. The US inflation report showed an unexpected rise, with February’s CPI at 3.2% YoY. The USD/CAD faces pressure due to trade status changes and …

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Japanese Yen rallied against U.S. Dollar

USD/JPY Plunges to 146.50: Economic Shifts in Focus

Quick Look USD/JPY fell from 150.50 to 146.50, marking a significant drop. Soft U.S. economic data fuels speculation on Fed rate cuts. BoJ’s upcoming meeting could tighten monetary policy. The historical average suggests a possible reversion for USD/JPY. Market sentiment shows a bearish outlook, with 67% of traders short on USD/JPY. Last week, the USD/JPY …

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AUD/USD - The Greenback: US dollar and Australian dollar banknotes.

2024 AUD/USD: Rebounds Above 0.6800 Amid Trade Strength

Quick Look AUD/USD is currently above 0.6800, showcasing a strong position. Powell’s testimony hinted at potential interest rate cuts that could bolster the AUD/USD pair. Trade data indicates robust exports, contributing to the boost in the Australian dollar. High gold prices support the currency’s appreciation. Technical analysis suggests a cautious outlook with the potential for …

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NZD/USD - New Zealand dollar bills.

NZD/USD: 0.6172 Downtrend Amid Economic Signals

Quick Look The NZD/USD is experiencing a slight downtrend, trading near 0.6172 and down by 0.03%. Resistance under 0.6200 is evident as the key barrier remains unbroken. The pair is impacted by mixed influences, including US labour data, Powell’s dovish comments, and China’s CPI. Anticipation is building for upcoming US CPI and Retail Sales data. …

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India coal

India’s Power Shift: Coal Imports & 255 GW Demand Surge

Quick Look: Within the first 11 months of the current financial year, India’s thermal coal imports exceeded the previous year’s shipments. A power demand peak of 255 GW will occur between April and June 2024, indicating a growth of 6-7% year-over-year. Recommendations for coal-based power plants include design modifications and boiler retrofitting to decrease reliance …

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Dollar and the short-end U.S. yields surge - DXY

Tokyo CPI & Global Events Shift US Dollar Dynamics

Quick Look Tokyo CPI may prompt BOJ policy shifts, impacting USD/JPY. ISM Services PMI rise challenges Fed rate cut expectations, affecting the U.S. dollar. The U.S. Dollar Index’s uncertain path hinges on Powell’s testimony and economic indicators. Slower U.S. wage growth and service industry expansion signal a cooling labour market. Bitcoin’s surge and fiscal policies …

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USD/JPY

USD/JPY Plummets Below 149: Market Repercussions

Quick Look Sharp fall in USD/JPY from above 150 to below 149. Nikkei 225 futures reversed despite reaching record highs, unaffected by USD/JPY movements. The correlation between USD/JPY & Nikkei 225 at 0.9 indicates a strong relationship due to export dynamics. Correlation between USD/JPY & US bond yields at 0.91, highlighting sensitivity to interest rate …

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USD to CNY: Chinese yuan and US dollar bills

Yuan’s Leap: Top 8 to Top 5 in Global Trade?

Quick Look Chinese yuan (CNY) ranks eighth in global currency trade, potentially top five due to underreporting. Included in IMF reserve currencies list since 2016, bolstering international usage. Significant loans through the Belt and Road Initiative are denominated in CNY. China’s strategic shift to a consumption and service-oriented economy underlines CNY stability. The Chinese yuan’s …

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Cocoa

Cocoa Crisis: Prices Swing Amid 374K MT Deficit Forecast

Quick Look May London Cocoa hits 5,620 pounds a ton, then drops 1.1%. May New York Cocoa falls 1.2% from a record high. Industry braces for a fourth consecutive cocoa supply deficit. Lindt & Spruengli to hike prices amid rising costs. ICCO forecasts a widening deficit; global cocoa output to decline. Venezuelan cocoa finds new …

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Wibest – NZD/USD: One hundred New Zealand dollar bills.

NZD/USD Dips to 0.6100 Amid 7.8% Trade Deficit

Quick Look NZD/USD dips to near 0.6100, impacted by a stable US Dollar and New Zealand’s larger-than-expected trade deficit. New Zealand’s economic indicators show mixed signals; consumer confidence rises while policy normalization is eyed for 2025. US economic indicators present a slowdown, with manufacturing PMI and consumer sentiment declining. The market anticipates the Federal Reserve’s …

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China

China’s Economy Hits 30-Year Low, Eyes 5% Growth

Quick Look China’s GDP growth has reached a 30-year low amidst a backdrop of declining birth rates and high youth unemployment. Despite challenges in the financial and property markets, sectors like tourism, electric vehicles, and solar panels show robust growth. The economy expanded by nearly 5% last year, driven by industries outside the troubled housing …

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