#news As Asian stock markets declined after Beijing failed to announce any new steps to support the slowing economy, investors will be watching how much pro-tightening statements US Central Bank Governor (Fed) Jerome Powell, who will speak in front of Congress today, will use.
The MSCI index, which tracks Asia-Pacific stock markets outside Japan (.MIAPJ0000PUS) declined 0.81%, while Japan's Nikkei index NI225 it registered an increase of 0.66%.
Powell, who will address Congress today and tomorrow, will most likely answer questions from politicians about whether interest rates will really rise again in July and whether they will reach the peak in the December range of 5.5%- 5.75% as predicted. #crypto2023
On the other hand, the minutes of the last meeting of the Bank of Japan (BOJ) showed that only one of the nine board members recommended a rethink of the policy of keeping bond yields low, after which he even said that it would be better to wait for a while.
The lack of haste in this regard restricts the rises in the yen and the dollar is at 141.6 yen
USDJPY
he is expected to hold. This level is quite close to the seven-month peak recorded yesterday with 142.26.
Sterling will face a big test due to consumer prices data, which will be released later in the day in the UK. In the event of an upward surprise in the data, the Bank of England (BoE) may come under pressure to raise interest rates by 50 basis points at tomorrow's monetary policy meeting.
Headline consumer price inflation in the UK is forecast to fall to 8.4%, but core inflation will remain stable at 6.8%.
Futures indicate that the BOE will increase by 50 basis points with a 25% probability. (0#BOEWATCH)
(The data below are as of TSI 0842. The ones with the '*' sign next to it are the closing data.) #Binance
currency exchange
The dollar maintained its gains in Asian trading after unexpectedly strong US housing construction data, while the yuan and the Australian dollar tried to recoup their losses.
Fed Chairman Jerome Powell's speech in front of Congress will be watched. The dollar index, which measures the dollar against six major currencies
DXY it rose 0.06% to 102.57.
USDCNY
while it declined by 0.03% yesterday, it fell in offshore transactions today.
USDCNH
The yuan hovered near a seven-month low at 7.1826.
Australian dollar
AUDUSD After the Reserve Bank of Australia (RBA) raised interest rates this month, it extended its losses when the minutes of its last meeting showed that the central bank was less pro-tightening than expected. It last traded at $0.6790 after a 0.9% decline yesterday.
Dollar against yen
USDJPY it was trading up 0.23% at 141.77.
Euro/dollar
EURUSD it fell 0.02% to 1.0914.
oil
Oil prices recovered in early trading today after declining on both trading days, while expectations that Fed Chairman Powell will speak in favor of tightening later in the day and a possible reduction in US crude oil inventories became more dominant than worries about demand in China.
Brent crude oil's near-term barrel price BRN1! it was trading 0.45% higher at $76.24. US light crude oil CL1! it was trading 0.56% higher at $71.59.
gold
Gold prices were hovering in a narrow December today after losing both trading days, while investors avoided taking positions ahead of Powell's speech to Congress. The price of gold in ounces on the spot market GOLD it was trading 0.02% higher at $1,936.60. US gold futures #GOLD it hovered at 1,948.40.