THe USD/JPY Pair Will Be Able To Hold Its Annual Growth

The USD/JPY Pair Will Be Able To Hold Its Annual Growth

InstaForex Analysis InstaForex Analysis 07.12.2022 09:35
The USD/JPY pair plummeted in November, which made many question its bullish potential. However, the dollar's recent growth convinces investors otherwise. So what to expect from the major? The dollar is winning so far The greenback rose 0.3% against its major peers on Wednesday night. The dollar was supported by rising concerns about the global recession. The day before, three leading U.S. banks - J.P. Morgan, Goldman Sachs and The Bank of America - said they expect a slowdown in global economic growth next year, as rising inflation is threatening consumer demand. The pessimistic outlook reinforced the anti-risk sentiment that prevailed for the third consecutive session. The MSCI All-Country World Index, which tracks stock market performance in 48 countries, fell 1.26%, down from a three-month high last week. The loss of appetite for equities and increased demand for the dollar was also triggered by strong US macrodata. Recall that earlier this week the Institute for Supply Management (ISM) said that economic activity in the services sector grew from 54.4 to 56.5 in November. The data followed Friday's report from the U.S. labor market, which also pleased dollar bulls. The nation's NonFarm Payroll employment rose more than forecast last month. The portion of optimistic data greatly strengthened the market's hawkish expectations for further monetary policy by the Federal Reserve. Currently, most traders expect the U.S. central bank to raise the rate by 50 bps next week. The probability of an increase by 75 bps is only 5%. However, talk of a higher peak in U.S. interest rates has returned to the market. Many investors believe the rate could reach 5.25% in 2023, whereas now it is in the 3.75-4% range. The hope that the Fed will continue to raise rates next year and keep them high for a long time acts as a very powerful trigger for the dollar at this point. This factor particularly helps the greenback against the yen. After USD/JPY plummeted to a 3-month low of 133.64 last week, it has now gained 3% and has managed to stay above 137. There aren't many new factors that can strongly influence the asset's dynamics now. In the coming days, investors will focus on two events: the US consumer price index for November and next week's Fed meeting. If investors see more robust inflation and hear hints of a higher peak in U.S. interest rates from U.S. officials, it will likely trigger a new wave of growth in the USD/JPY pair. What's in store for the USD/JPY next year? In November, the U.S. currency posted its worst monthly performance in 14 years against the yen. It fell by more than 7% due to fears that the US central bank is going to slow the pace of rate hikes. However, most currency strategists, recently surveyed by Reuters, believe that in the next few months, USD/JPY will be able to hold its annual growth, which amounted to 20%. The growing threat of recession in the U.S. and other countries should provide support to the dollar. In the backdrop of risk aversion, the greenback will once again feel a surge of strength, which will help it recover its recent losses on all fronts, even against the yen. "For now, the forces that have supported the USD this year remain valid, despite the recent correction lower. Other currencies do not look as attractive yet," said Athanasios Vamvakidis, head of G10 FX strategy at Bank of America. In the BofA baseline, the U.S. dollar will remain strong early next year and will only start a more sustained downward path after the Fed pauses. Despite the dollar's recent pullback, major currencies are not expected to recoup their 2022 losses against the USD until at least late 2023, the survey showed. Analysts estimate that the Japanese yen, down nearly 20% for the year and currently trading around 136.50 per dollar, was expected to change hands around 139.17, 136.17 and 132.67 per dollar over the next three, six and 12 months respectively.   Relevance up to 08:00 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. Read more:
B2Broker Rolls Out a Brand-New Massive Update for B2Core, Adding New Features, Upgrades, and Improvements

B2Broker Rolls Out a Brand-New Massive Update for B2Core, Adding New Features, Upgrades, and Improvements

B2Brokers Group of Companies B2Brokers Group of Companies 07.12.2022 09:35
The technology and liquidity solution provider B2Broker, one of the global fintech companies offering cutting-edge solutions in Cryptocurrency, Forex, and CFD markets, has recently updated its flagship product, B2Core, in a significant way. This update provides clients with enhanced functionality, flexibility, and security by adding the following new features: Admin notifications new module Better B2Core and B2Trader sync Client Tests Upgrades Verification level increase via a Client Test New KYC providers Deposits through Google Pay Netting / Hedging option added to cTrader integration Module of Event Notifications The team has expanded the admin notifications area by including Event Notifications. This new function will make it easier for admins to be informed about various back-office system events and respond more promptly and effectively to any changes or problems. In addition to alerts for withdrawal requests, the conclusion of Client Test, and other events, admins can configure individual alerts. Additionally, the team has included a bot to provide reports using Slack. Better B2Core and B2Trader Sync Asset creation on the B2Trader side is no longer required. In the B2Core back office, administrators can now create currencies and add them to Products. The asset is then automatically added to the B2Trader side. By automating the asset creation process, users will save time and effort, which in turn will improve the overall user experience. Client Tests Upgrades There are now two types of questions in the Client Tests: open questions and questionnaires. Using open questions allows the user to provide an unrestricted response. Questionnaires provide clients with a simple and convenient method of obtaining important information from their users. Verification Level Increase Via a Client Test Now, admins may find and enable a back-office setting that necessitates a Client Test for end-user verification. Users must pass a Client Test in addition to uploading KYC documents after their account has been activated to go on to the next stage of the verification process. New KYC Providers Two new KYC providers have been integrated: Sapuma and IDWise. B2Core clients will be able to collect new user information more quickly and easily while complying with all regulatory requirements thanks to the expanded user verification capabilities. Additionally, all personal data is safeguarded thanks to the high degree of security offered by Sapuma and IDWise. Deposits Through Google Pay B2Core now offers Google Pay deposits. Adding the popular payment service simplifies the deposit process for users and makes the deposit process more convenient. Clients can activate Google Pay deposits independently or with assistance by the B2Core team by integrating specific payment providers into their ecosystem. cTrader Integration Enhancements In order to improve the B2Core integration with cTrader, the team added the ability to select a type of account. Admins can activate it in the back-office settings, which will allow their users to select between two account types: net and hedge accounts. A netting type allows only one position to be opened in any direction for one instrument at a time, whereas a hedging type allows for multiple positions to be opened simultaneously in different directions. Further, the admin user has the option of restricting the available account types to a single type, thereby ensuring that all traders have the same options. Concluding points B2Broker continually strives to improve its products and services to give customers the best experience possible. The release of the most recent B2Core version gives brokers access to cutting-edge technology innovations, enhanced integrations, and KYC capabilities. Take advantage of these new features right away to see what they can do for your business.
The Reserve Bank Of India Decision Impacted On Indian Indices Volatility

The Reserve Bank Of India Decision Impacted On Indian Indices Volatility

TeleTrade Comments TeleTrade Comments 07.12.2022 09:14
Bearish S&P500 has faded optimism in Asian indices. China’s easing Covid-19 restrictions-inspired optimism has dwindled the impact of a weaker Trade Balance. The oil price has refreshed its 11-month low at $74.54 amid downside revision in economic forecasts. Markets in the Asian domain have failed to continue Tuesday’s optimism and are facing pressure due to negative market sentiment. Indices are following bearish cues from S&P500 as the latter has witnessed selling pressure consecutively for two trading sessions. Volatility inspired by Federal Reserve (Fed)’s interest rate peak chaos is still breathing and impacting risk-sensitive assets. At the press time, Japan’s Nikkei225 dropped 0.69%, ChinaA50 added 0.20%, Hang Seng eased 0.10%, and Nifty50 slipped 0.35%. Growing concerns over Fed’s interest rate peak have strengthened the risk-off mood in global markets. Evidence of fresh strength in the United States economy is compelling for a higher neutral rate as inflation is set to rebound again amid rising fears of wage inflation. No doubt, a higher interest rate peak by the Fed will accelerate recession fears ahead. Meanwhile, optimism in Chinese equities led by easing Covid-19 lockdown restrictions has faded weaker Trade Balance data. In US Dollar terms, Exports dropped by 8.6% against the consensus of 3.5% and Imports tumbled by 10.6% vs. the projections of 6.0%. China’s Trade Balance has slipped sharply to $69.84B in comparison with the estimates of $78.1B. Meanwhile, Indian indices are displaying volatility as the Reserve bank of India (RBI) has raised the repo rate by 35 basis points (bps). Also, RBI Governor Shaktikanta das has trimmed Gross Domestic Product (GDP) forecast to 6.8% for FY2023. The 50-stock Indian basket has slipped by 0.35%. On the oil front, the oil price has refreshed its 11-month low at $74.54 as expectations for a higher interest rate peak by the Fed have revised down economic projections. A fresh downside revision in the growth forecast has offset supply worries from Russia.

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