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Yen Surges From Year’s Low as Traders Pin Move to Options Expiry
The yen jumped against the dollar, with analysts speculating it was partly the result of options expiring rather than Japanese authorities stepping into the market to counteract its weakness. It strengthened as much as 0.2% to 151.21 per dollar following a bout of sustained depreciation that’s been driven by a persistently wide interest-rate gap between Japan and the US. Earlier, the yen traded to a year-to-date low of 151.91. “I suspect it is the market doing it to itself, with the fear of BOJ intervention,” according to Marc Chandler, chief market strategist at Bannockburn Global. The move also comes after ... (full story)
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The effects of climate change and climate mitigation policies have become an actively debated topic in macroeconomic and central bank circles over the last few years. Some central banks now have references to supporting government climate change policies within the secondary objectives of their remits, including the Bank of England. Not everyone agrees on what role central banks should play in achieving climate change objectives. To me, one thing is clear: When climate change has macroeconomic effects – whether physical impacts from extreme weather events and higher average temperatures or transition effects associated with transforming to a net zero economy, including explicit implications for inflation – it becomes a concern for monetary policymakers, directly within a price stability mandate. That applies whether the monetary policymaker’s remit includes a reference to climate change or not. The Bank of England has been a leader on raising awareness of the risks that climate change presents for economies, beginning with former Governor Mark Carney’s 2015 speech “Breaking the Tragedy of the Horizon”. Since then, much work has focused on the impact on financial stability, financial sector risks, and financial policy from climate change. Today I want to focus on a topic that has received less attention: The consequences for monetary policy of the pathway to net zero. There are two dimensions: First, the implications for monetary policy of the macroeconomic effects of climate change itself. Second, more nuanced but perhaps more novel, the monetary policy implications of climate mitigation policies. Despite net zero being a long-term target, both of these are also relevant over my monetary policy horizon. Is the climate change-monetary policy nexus something new facing central bankers? One could argue that macroeconomic changes from sho post: *BOE'S MANN: CLIMATE SHOCKS POINT TO MORE INFLATION PERSISTENCE
The Federal Reserve Bank of New York's Center for Microeconomic Data today released the October 2023 Survey of Consumer Expectations, which shows that inflation expectations declined slightly at the short- and longer-term horizons while remaining unchanged at the medium-term horizon. Labor market expectations and household expectations of future income and spending growth were largely stable. The main findings from the October 2023 Survey are: • Median inflation expectations declined at the one-year and five-year ahead horizons in October, falling to 3.6% from 3.7% and to 2.7% from 2.8%, respectively. Median inflation expectations at the three-year ahead horizon remained unchanged at 3.0%. The survey's measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) increased at the one-year ahead horizon and decreased at the three-year and five-year ahead horizons. Median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—increased slightly at the one-year ahead horizon, remained unchanged at the three-year ahead horizon, and declined at the five-year ahead horizon. Median home price gr post: NY FED: OCTOBER YEAR AHEAD EXPECTED INFLATION AT 3.6% VS SEPTEMBER’S 3.7% NY FED: OCTOBER THREE-YEAR AHEAD EXPECTED INFLATION STEADY AT 3% NY FED: OCTOBER FIVE-YEAR AHEAD EXPECTED INFLATION AT 2.7% VS SEPTEMBER’S 2.8% NY FED: OCTOBER YEAR AHEAD GAS PRICE EXPECTED CLIMB…
Last week, Fed Chair Jerome Powell surprised the markets a bit by insisting that the FOMC was not confident it had done enough to bring inflation down. This saw yields in US ...
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Mexico’s central bank will reduce its key interest rate “gradually” and the first cut won’t come until next year, governor Victoria Rodriguez Ceja told newspaper El Financiero, ...
The Japanese yen is showing limited movement on Monday. In the North American session, USD/JPY is trading at 151.56, up 0.02%. Earlier, in the day, the yen dropped to a low of ...
Sr. Technical Strategist Michael Boutros highlights the targets & invalidation levels that matter on the technical charts into the weekly open.
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- Posted: Nov 13, 2023 11:20am
- Submitted by:Category: Fundamental AnalysisComments: 0 / Views: 2,498