BANK OF JAPAN INTERVENTION?!
(Reuters) TOKYO – The unexpected jump in the yen currency versus the dollar on Tuesday was probably not the result of official Japanese intervention, according to statistics from the money market released by the Bank of Japan on Thursday.
The central bank projected a 1.09 trillion yen ($7.32 billion) net receipt of funds for Friday’s money market conditions, which was close to the 800-900 billion net receipt of funds brokerages, excluding intervention, predicted.
Despite the fact that bank transactions for currency intervention take effect two working days later, it was uncertain at the time of the yen’s resurgence whether they would be reflected in data on Thursday.
According to Norihiro Yamaguchi, a senior economist at Oxford Economics, “It’s very close to the estimates. Although it’s still unclear, I’d say there wasn’t a significant intervention.”
EUR/USD
In anticipation of United States (US) employment-related cues, market participants retain a cautious approach as the EUR/USD pair trades in a narrow range slightly above the 1.0500 level on Thursday. The mood was dimmed by hawkish remarks made earlier in the week by US Federal Reserve (Fed) officials, who indicated at a potential rate hike in the November meeting due to persistently high inflation.
Speculative interest worries caused government bond yields to surge to multi-year highs, with the 10-year Treasury note’s yield reaching levels last seen in 2007. Although extreme overbought conditions sent the US dollar into a corrective drop on Wednesday, the market’s worries helped the US dollar.
BITCOIN UPDATE
Since turning south from that level on Thursday morning, when the market valuation dropped to $1.084 trillion, the cryptocurrency market is fighting to break over the $1.09 trillion barrier.
Bitcoin has failed to launch a new attack on the 200-day moving average and continues to trade on growth. Although the stock market has recently outperformed it, Bitcoin is currently declining against the buying in the indices. Bitcoin appears to be more likely to decline in the near future than rise.
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