Author: FX

The EUR/JPY pair trades 0.27% lower to near 183.60 during the Asian trading session on Wednesday. The pair faces selling pressure as the Japanese Yen (JPY) outperforms across the board, following strong remarks from Japan’s Finance Minister (FM) Satsuki Katayama signaling the possibility of intervention against excessive one-sided moves. Japanese Yen Price Today The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Euro. USDEURGBPJPYCADAUDNZDCHFUSD-0.03%-0.16%-0.31%-0.11%-0.12%-0.08%-0.05%EUR0.03%-0.13%-0.31%-0.09%-0.10%-0.05%-0.02%GBP0.16%0.13%-0.17%0.06%0.05%0.09%0.12%JPY0.31%0.31%0.17%0.23%0.21%0.24%0.28%CAD0.11%0.09%-0.06%-0.23%-0.03%0.00%0.06%AUD0.12%0.10%-0.05%-0.21%0.03%0.05%0.04%NZD0.08%0.05%-0.09%-0.24%-0.01%-0.05%0.03%CHF0.05%0.02%-0.12%-0.28%-0.06%-0.04%-0.03% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while…

SummaryNomura sees Asia’s easing cycle largely complete despite low inflationA north–south monetary policy divide is emerging across the regionKorea, Australia, New Zealand and Malaysia seen holding or hiking ratesResidual rate cuts expected in India, ASEAN economies and ChinaRisks skewed to global growth, trade tensions and AI-related volatilityAsian monetary policy is entering a more fragmented phase, with a growing divide emerging between northern and southern economies, according to Nomura.In a recent note, Nomura argues that the easing cycle across much of Asia is now largely complete, despite inflation remaining relatively subdued in many economies. The bank says improving growth dynamics, policy…

SummaryU.S. to impose tariffs on Chinese legacy chips, but only from June 2027Decision follows a year-long Section 301 investigation launched under BidenDelay preserves leverage while easing near-term trade tensions with ChinaMove coincides with negotiations over rare earths and tech export controlsBroader Section 232 chip tariffs remain possible but not imminentThe United States has opted to delay the imposition of new tariffs on Chinese semiconductor imports until mid-2027, signalling a tactical effort to manage trade tensions with Beijing even as Washington keeps the option of tougher action firmly on the table. News via Reuters ICYMI. The Office of the United States…

SummaryBank of Korea says NPS has activated strategic FX hedgingThe move aims to manage FX risk and curb won volatilityHedging could generate dollar selling and support the wonAuthorities frame it as risk management, not interventionSignals lower tolerance for prolonged currency weakness-South Korea’s central bank, the Bank of Korea, said the country’s National Pension Service (NPS) has activated a new framework for strategic foreign-exchange hedging, marking an important shift in how authorities are seeking to stabilise the won amid persistent currency volatility.The NPS, one of the world’s largest pension funds with extensive overseas investments, has traditionally run a relatively low level…

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.The Bank injected CNY 26bn via 7-day reverse repos at an unchanged rate of 1.4%.Earlier:The daily fixing of this mid-rate is often interpreted as a policy signal rather than just a technical reference point. A higher-than-expected USD/CNY midpoint is…

US judge rejects business group’s challenge to Trump’s $100,000 H-1B visa fee Source link

SummaryTesla UK sales fell sharply in November, echoing wider European declinesGermany and France saw particularly steep drops in Tesla registrationsCompetition from Chinese automakers, especially BYD, intensifiedUK EV buyers increasingly favour plug-in hybrids over full BEVsThe data point to structural challenges rather than a one-off dipSales of Tesla continued to weaken across Europe in November, with the UK joining a broader regional slowdown that has highlighted growing competitive pressures and shifting consumer preferences in the electric-vehicle market.In the UK, Tesla registrations, a proxy for sales, fell sharply year on year. Preliminary data from industry tracker New AutoMotive showed registrations down 19%…

The People’s Bank of China is due to set the daily USD/CNY reference rate at around 0115 GMT (2115 US Eastern time), a fixing that remains one of the most closely watched signals in Asian foreign exchange markets. China operates a managed floating exchange rate system, under which the renminbi (yuan) is allowed to trade within a prescribed band around a central reference rate, or midpoint, set each trading day by the PBOC. The current trading band permits the currency to move plus or minus 2% from the official midpoint during onshore trading hours. Each morning, the PBOC determines the…

I posted earlier on why this doesn’t rally matter too much, the meeting pre-dates December’s much more consequential rate hike and the subsequent swings in the yen:Anyway, for good order, here’s a summary article. SummaryBOJ October minutes reflect broadly stable global and domestic conditions at the timeU.S. growth seen as solid, supported by AI investment and resilient consumptionChina identified as a growing downside risk amid tariff pressures and property weaknessJapan’s financial conditions remained highly accommodative, with real estate risks notedCore inflation around 3%, driven largely by food prices and wage pass-throughMinutes from the Bank of Japan October policy meeting (full…

The Corporate Service Price Index (CSPI), more commonly referred to as Japan’s services producer price index, measures the change in prices charged between companies for services, such as transport, communications, advertising and other business-to-business services. Unlike traditional producer price indexes focused on goods, the CSPI captures service-sector price pressures that can be a leading signal for consumer inflation and broader cost dynamics in a service-driven economy. The CSPI is closely watched by economists and the Bank of Japan as it tends to feed through to consumer services inflation with a lag. Because many services are labour-intensive, upward price momentum here…