Forex News Roundup for 27th June, 2023
June 27, 2023 142 Views
- In a recent statement, Masato Kanda, Japan’s primary representative in matters pertaining to foreign exchange, highlighted that the relevant authorities are poised to respond to any excessive fluctuations in the currency market. Kanda expressed concerns about the swift depreciation of the Yen, emphasizing the potential negative impact on Japan’s thriving economy.
- The Japanese Yen has recently reached multi-year lows against several currencies, with EUR/JPY hitting a 15-year high, GBP/JPY reaching a 7-year high, and USD/JPY attaining a 7-month high. While Japan has a history of issuing strong statements regarding a weakening Yen, it often refrains from taking concrete measures to counteract it. However, trend traders remain cautious about possible intervention from the Bank of Japan to support the Yen, recognizing the considerable challenges associated with such endeavors.
- During the weekend, an apparent act of rebellion unfolded against the Russian government or military, orchestrated by the Wagner Group—a private paramilitary organization extensively deployed by Russia in Ukraine. The group announced their intention to march on Moscow, successfully occupying two Russian cities along their path. However, their advance halted when they were mere hundreds of miles away from the capital, prompting their subsequent retreat.
- The rebellion was abruptly called off on Saturday evening, coinciding with reports of the Wagner Group’s leader seeking asylum in Belarus. Meanwhile, the Russian military has begun the process of assimilating the Wagner Group. Surprisingly, financial markets exhibited a remarkably calm response to these unfolding events.
- The end of the week witnessed predominantly disappointing purchasing managers’ index (PMI) data for the services and manufacturing sectors in the UK, Germany, and France. In contrast, the United States exhibited a better-than-anticipated performance in its services sector. These contrasting results highlight the relative strength of the US economy.
- Bitcoin experienced significant upward momentum in the previous week, attaining a new high price not seen in a year. Nevertheless, early indications suggest that the pivotal resistance at $30,534 is exerting its influence, presenting a barrier for further price advancement.
- With no noteworthy data releases slated for today, the trading landscape is poised to be exceptionally tranquil. As a result, market participants can anticipate a quiet Monday devoid of high-impact events that typically drive substantial market movements.