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USD/JPY hits 20-year high

“The stock market is a device to transfer money from the impatient to the patient.” - Warren Buffett

 

 

HEADLINES

  • Hawkish Fedspeak keeps dollar king, yen slumps to 20-year low
  • China’s first quarter GDP beats expectations to grow 4.8% year-on-year
  • PBOC seen unlikely to cut policy rate/RRR further – Goldman Sachs
  • CRUDE OIL Near Term: Upside favored

 

FOREX

 

 

Hawkish Fedspeak keeps dollar king, yen slumps to 20-year low

 

 

The dollar rose to a two-decade peak against the yen and kept close to a two-year high to the euro on Friday, as more hawkish comments from Federal Reserve officials reinforced expectations for faster U.S. policy tightening.

The greenback was 0.43% higher at 126.40 yen after earlier reaching 126.56 for the first time since May 2002. The euro slipped 0.14% to $1.0812, heading back toward the overnight low of $1.0785, a level unseen since April 2020.

New York Fed President John Williams said on Thursday that a half-point rate rise next month was “a very reasonable option,” in a further sign that even more cautious policymakers are on board with faster monetary tightening.

China’s first quarter GDP beats expectations to grow 4.8% year-on-year

China’s first quarter GDP grew faster than expected despite the impact of Covid lockdowns in parts of the country in March, according to data released by the National Bureau of Statistics Monday.

First quarter GDP rose by 4.8%, topping expectations of a 4.4% increase from a year ago.

Fixed asset investment for the first quarter rose by 9.3% from a year ago, topping expectations for 8.5% growth. Industrial production in March rose by 5%, beating the forecast for 4.5% growth.

However, retail sales in March fell by a more-than-expected 3.5% from a year earlier. Analysts polled by Reuters anticipated a 1.6% decline.

 

 

COMMODITIES

 

 

Gold & Oil markets were closed on Friday

 

 

STOCKS

 

 

US & European stock markets were closed on Friday

 

 

ANALYSIS

 

 

PBOC seen unlikely to cut policy rate/RRR further – Goldman Sachs

After Friday's RRR cut Goldman Sachs noted that "according to the statement following the announcement, policymakers appear concerned about uncertainties around inflation and spillover effects from monetary policy tightening by major developed markets,” per Reuters.

“Given the smaller-than-expected RRR cut and the central bank's concerns over inflation and Fed hiking, we no longer expect a policy rate cut or a further RRR cut in our baseline,” Goldman Sachs added.

 

 

CHART

 

 

CRUDE OIL Near Term: Upside favored

 

 

Technical View: Long position above 104.25. Target 107.3. Conversely, break below 104.25, to open 103.1.

Comments: The pair remains supported. Further advance favored.

Source: Trading Central


 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

1.    https://www.fxstreet.com/economic-calendar
2.    https://www.cnbc.com/2022/04/15/hawkish-fedspeak-keeps-dollar-king-yen-slumps-to-20-year-low.html
3.    https://www.fxstreet.com/news/pboc-seen-unlikely-to-cut-policy-rate-rrr-further-goldman-sachs-202204180227