Rise of the Japanese Yen: The Japanese Currency, the yen, surged against most major and minor currencies last week.
This was due to the decline in U.S. bond yields, which supported the yen gains.

The yen moved away from its 38-year low thanks to the intervention
of the Japanese central bank in the foreign exchange market to halt the excessive weakening of the local currency.

Contents

Decline in Gold Prices

Rise of the Japanese Yen

Expectations of No Significant Increase in British Inflation

Decline in Gold Prices

Global gold prices fell during Monday’s trading as investors awaited comments from Federal Reserve officials and upcoming economic data.
Federal Reserve Chairman Jerome Powell and other officials are scheduled to speak this week.
The forthcoming data includes U.S. retail sales, June industrial production, and weekly jobless claims.
If retail sales are weak, it could reinforce the need to cut interest rates, which could help gold prices.
If gold surpasses $2,450, it may reach new record levels.
The U.S. Department of Labor’s Bureau of Statistics reported a 0.2% increase in the Producer Price Index
in June after remaining unchanged in May, exceeding the expected growth of 0.1% amid rising service costs.

Rise of the Japanese Yen

The Japanese yen surged against most major and minor currencies last week.
This was due to the decline in U.S. bond yields, which supported the yen gains.
The yen moved away from its 38-year low thanks to the intervention of the Japanese central bank
in the foreign exchange market to halt the excessive weakening of the local currency.
The yen topped the list of winning currencies last week, achieving its best weekly performance since late April.
New buying positions accelerated, along with the covering of short positions.
Instead of the Japanese central bank’s low liquidity and momentum strategy,
it has adopted a new approach based on solid liquidity and accelerating momentum.
The sharp drop in long-term U.S. Treasury yields supported the gains of the Japanese currency,
as more extraordinary U.S. inflation data increased the likelihood of at least two Federal Reserve rate cuts this year.

Expectations of No Significant Increase in British Inflation

According to Reuters, Swati Dhingra, a member of the Bank of England’s Monetary Policy Committee,
said on Monday that it is unlikely that inflation in the UK will rise significantly again due to weak demand.
She emphasized the need for the Bank of England to reduce borrowing costs.
Dhingra stated, “Now is the time to start normalizing interest rates so
that we can finally stop pressuring living standards in the way we have been trying to reduce inflation.”
She added that she does not see any kind of consumption boom,
and if we are to start moderating from the extremely high interest rates we are currently at,
it will take some time for this to happen
so that we can ease it and feed it into the real economy.
Finally, Swati Dhingra from the Bank of England emphasized that demand is too weak to allow inflation to rise sharply.

Rise of the Japanese Yen

Rise of the Japanese Yen

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