The dollar surged to a 19-month high on Thursday on Fed rate-hike bets, pushing the yen toward the key 160 level. Some major brokerages expect another hike early next year, in addition to one in December.
Leading currency diplomat, Atsushi Mimura, issued a warning as the yen approached the key threshold, saying that it is "too early to forget" this summer's market intervention.
Reinforcing its hawkish bias, the BOJ flagged upside price risks and declared victory in its 14-year battle to meet its inflation goal, even as it kept its key rate at 1.25% in October.
Governor Ueda faces setbacks in managing a divided board, with hawks pushing for quicker rate increases and doves cautious about slowing economic growth.
Household spending unexpectedly plunged at its fastest pace since 2020. This highlights weak consumption, despite rising expectations that sustained inflation warrants further rate increases.
Top Iranian officials suspect the US is planning either renewed military action or a tightening economic blockade that would compel Tehran to respond. Oil prices shrugged off the declaration.
EBC Financial Group analyst notes the yen’s bearish breakout from the recent consolidation range. The path of least resistance is downwards, with the 200 SMA seen as the primary support zone.
Asset Recap
As of market close on 11 November, among EBC major products, CoreWeave shares led gains after the neocloud infrastructure provider reported better-than-expected quarterly revenue and raised its revenue outlook.
Tech stocks surged as fresh excitement around AI trading helped the Nasdaq 100 briefly wipe out its post-midterm losses and calm fears about the long-term viability of AI infrastructure.
The Swiss franc hit a 4-week low as the dollar strengthened across the board following a sharp shift in Fed interest rate expectations. But Swiss inflation picked up in October.
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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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