• About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Non Banking Funds

The Dollar Slides Ahead of the BoJ Meeting

The US dollar retraced in the early European market on Monday. Last week's wage growth signaled the easing of inflationary havoc and US CPI data also showed inflation slowing for the first time in two and a half years in December 2022.

Anuj Singh by Anuj Singh
January 17, 2023
in Funds, The Global Economics, Top Stories
Reading Time: 3 mins read
0
The Dollar Slides Ahead of the BoJ Meeting. PC: Reuters

The Dollar Slides Ahead of the BoJ Meeting. PC: Reuters

31
SHARES
173
VIEWS
FacebookTwitterRedditWhatsAppLinkedInFacebook

The volumes have been quite dry as the US market was closed yesterday, on account of Martin Luther King Jr. day

The dollar index (DXY) opened on a weaker sideline on Monday, January 16, touching its seven-month low. This fresh selling of the dollar is blamed upon the expectation of a softer hawkish stance by the Federal Reserve, which will slow down the pace of rate hikes. The volumes have been quite dry as the US market was closed yesterday, on account of Martin Luther King Jr. day.

The US dollar retraced in the early European market on Monday. The dollar index (DXY), which is the combination of the Euro (EUR) – 57.6%, Japanese Yen – (JPY)  13.6%, Pound Sterling (GBP) – 11.9%, Canadian Dollar (CAD) – 9.1%, Swedish krona (SEK) – 4.2%, Swiss franc (CHF) – 3.6%, at 8:00 GMT moved upwards to 101.987, marginally higher than it’s seven months low of early June. Last week’s wage growth signaled the easing of inflationary havoc and US CPI data also showed inflation slowing for the first time in two and a half years in December 2022.

US Services Sector

According to the US Census Bureau, the US Services Sector comprising the major economic sectors, the Primary, Secondary and Tertiary Sectors, contracted to the levels of 2009 in December. The logical reasoning behind this contraction is the current spending pattern of consumers in a highly inflated market scenario. In times of rising costs of everything from food to fuel, no sound-minded citizen will be spending money on things that don’t come on the necessities list.

The services sector majorly was hit because people don’t want to spend money on services, the purchase of a new refrigerator can be delayed, and manicures and pedicures can be delayed, hence spending in the secondary and tertiary sectors took the severe bullets. This confirmed the expectations of slower but smaller hikes by the Fed, their intentions had been made very clear in earlier statements by Jerome Powell, Fed’s chairman that the only concern they have right now is to lower the inflation in the US, ignoring every repercussion in the pathway. Still, the smaller hikes will keep the US treasury bond yields lower. 

 

The Dollar Slides Ahead of the BoJ Meeting. PC: Reuters
The Dollar Slides Ahead of the BoJ Meeting. PC: Reuters

 

The Dollar-Yen pair inched higher

Traders shifted towards the Japanese Yen, pushing the USD/JPY pair higher, in speculation that the BoJ will be altering its yield control policy again in its meeting.

USD/JPY was up 0.1%, sitting at 128 and the primary focus is on the meeting of the BoJ on its policy setting. Talks of BoJ changing its yield control policy besides its decision of announcing the Monetary policy, the upcoming Wednesday. These suspected changes in yield control would be the successor of the utterly shocking announcement last month, which loosened the price band of the 10-year Japanese Government Bonds target. 

Japan is also in the clutches of inflation after decades of stagflation, with the rate of inflation climbing up to 4% which was last seen in the year 1982. This newfound skyrocketing price for the current generation is making BoJ uncomfortable, which could lead to further quantitative easing of monetary policies. 

The Fed’s smaller hikes, combined with the expectations of the BoJ’s quantitative tightening in the upcoming meeting will also give a bullish stance to the USD/JPY pair.

Dollar peer currencies

The Dollar Euro pair (USD/EUR) rose to a nine-month high of 1.0874. The Pound Dollar pair (GBP/USD) was near 1.2224. The US Dollar and Chinese Yuan pair (USD/CNY) increased 0.1% to 6.7090. While the Australian Dollar and US Dollar pair (AUD/USD) fell 0.1% to 0.6968.

Tags: BOJ meetingdollarjapanUS Census BureauUS treasury
Anuj Singh

Anuj Singh

Related Posts

Indonesia Tightens Monitoring of "High Risks, High Return" China-Funded Projects
Economy

Indonesia Tightens Monitoring of “High Risks, High Return” China-Funded Projects

by The Global Economics
July 16, 2025
EU-US Talks to Lower US Import Tariffs to Protect the Auto Industry
Transportation

EU-US Talks to Lower US Import Tariffs to Protect the Auto Industry

by The Global Economics
July 10, 2025
Saudi Arabia's PIF Reaches $1 Trillion, Making a Global Milestone
Funds

Saudi Arabia’s PIF Reaches $1 Trillion, Making a Global Milestone

by The Global Economics
July 7, 2025
Colombia Re-votes and Approves Pension Reforms Despite Opposition
Economy

Colombia Re-votes and Approves Pension Reforms Despite Opposition

by The Global Economics
June 30, 2025
Oman’s Sovereign Wealth Fund Records $4.1 Billion Profit: Global SWF
Funds

Oman’s Sovereign Wealth Fund Records $4.1 Billion Profit: Global SWF 

by The Global Economics
June 25, 2025
Twitter Youtube LinkedIn Soundcloud
the global economics logo

The Global Economics Limited is a UK based financial publication and a Bi-Monthly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

LSEG Weighs 24-Hour Trading to Close the Gap with Global Markets

LSEG Weighs 24-Hour Trading to Close the Gap with Global Markets

July 22, 2025
China Plans $167 Billion Mega Dam Project to Reach Its Zero Emission Goal Despite Objections

China Plans $167 Billion Mega Dam Project to Reach Its Zero Emission Goal Despite Objections

July 21, 2025
Hong Kong's Asset Management Hits US$4.5 Trillion Milestone

Hong Kong’s Asset Management Hits US$4.5 Trillion Milestone

July 18, 2025
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version