The Japanese Yen Above 150 Yen Barrier for the First Time in 5 Months: The Japanese yen rose widely in the Asian market on Thursday
against a basket of major and minor currencies, extending its gains for the third consecutive day against the US dollar.

Contents

The Japanese Yen

US Stocks

Bank of England

The Awakening Continues: The Japanese Yen Above 150 Yen Barrier for the First Time in 5 Months

The Japanese yen rose widely in the Asian market on Thursday against a basket of major and minor currencies,
extending its gains for the third consecutive day against the US dollar.
It traded above the psychological barrier of 150 yen per dollar for the first time in five months,
thanks to more aggressive than expected results from the Bank of Japan’s monetary policy meeting.

The Bank of Japan raised Japanese interest rates for the second time this year to the highest range since 2008,
announced a quantitative tightening plan, and halved government bond purchases over two years.
Governor Kazuo Ueda stated that the benchmark interest rate has no specific ceiling during the current normalization cycle.

US Stocks Close the Last Sessions of July with a Rise, and the Dow Jones Achieves Monthly Gains

US stock indices rose during Wednesday’s trading
amid the assessment of corporate earnings results and the Federal Reserve statement.

The Federal Reserve announced on Wednesday that it will keep
the interest rate unchanged for the fifth time this year and the eighth time in a row,
at a range between 5.25% and 5.50%, a move largely in line with expectations.

This marks the ninth time the Fed has held the interest rate steady since March 2022,
when the monetary tightening cycle began.

The Dow Jones Industrial Average rose by 0.2% (equivalent to 99 points) to 40,842 points,
achieving monthly gains of 4.4%.
The highest level was 41,198 points, and the lowest was 40,655 points.

Bank of England Poised to Lower Interest Rates

The Bank of England is set to start lowering the base interest rate by 25 basis points to 5%, down from its 16-year high of 5.25%.
However, the decision is highly challenging,
Many investors believe the central bank might opt to keep rates steady due to inflation concerns.
Headline inflation remained constant at 2% in June, while the unemployment rate remained at its highest level since 2021.
Meanwhile, wage growth, despite slowing, remains high.
The Bank of England will unveil new growth and inflation forecasts.

The Japanese Yen Above 150 Yen Barrier for the First Time in 5 Months

The Japanese Yen Above 150 Yen Barrier for the First Time in 5 Months

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