Kuroda defends weak yen

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert G. Allen

 

 

HEADLINES

 

 

• BOJ's Kuroda repeats view weak yen benefits Japan's economy
• Friendless yen faces third straight week of decline
• Oil drops as supply crunch fears ease, trading costs rise
• Gold gains on concerns over Ukraine crisis, inflation
• Wall St resumes rally, led by Nasdaq as chipmakers soar
• AUD/USD to advance back toward 0.75 by year-end – ANZ
• GOLD Short Term: Upside favored

 

 

FOREX

 

 

BOJ's Kuroda repeats view weak yen benefits Japan's economy

 

Bank of Japan Governor Haruhiko Kuroda on Friday reiterated his view a weak yen benefits the economy as a whole, brushing aside concern the currency's slide to multi-year lows could do more harm than good to the resource-poor, import-reliant country.

Due to structural changes in Japan's economy, the benefit from a weak yen comes more through an increase in the value of profits companies earn overseas, rather than a rise in export volume, Kuroda said.

 

Friendless yen faces third straight week of decline

 

The yen was headed for its worst week in two years on Friday, pummelled by Japan's rising import costs and low interest rates, while commodity currencies were set for a second consecutive weekly gain on the dollar as export prices remain elevated.

The euro has been slightly softer this week and was pinned at $1.1005 by concern that conflict in Ukraine will hurt Europe's economy by raising energy and food costs.

 

 

COMMODITIES

 

 

Oil drops as supply crunch fears ease, trading costs rise

 

Oil prices fell about $1 on Friday as the United States and allies considered releasing more oil from storage to cool markets and as traders faced higher costs for trading benchmark Brent futures.

Brent crude futures fell $1.07, or 0.9%, to $117.96 a barrel at 0053 GMT, after sliding 2.1% in the previous session.

 

Gold gains on concerns over Ukraine crisis, inflation

 

Gold rose on Wednesday as unruly inflation and the intensifying Ukraine crisis fed demand for the safe-haven metal, although a firmer dollar and high bond yields put a lid on gains.

Spot gold rose 0.8% to $1,937.52 per ounce by 2:05 p.m. ET (1805 GMT). U.S. gold futures settled up 0.8% at$1,937.30.

 

 

STOCKS

 

 

Wall St resumes rally, led by Nasdaq as chipmakers soar

 

Major U.S. stock indexes rallied more than 1% on Thursday, extending the market's recent rebound, as investors snapped up beaten-down shares of chipmakers and big growth names and as oil prices dropped.

Nvidia Corp's stock (NVDA)gained 9.8%, leading a rally across the chip sector and hitting its highest level since mid-January. Intel Corp (INTC) climbed 6.9%, and both stocks helped to boost the S&P 500 and the Nasdaq.

 

 

ANALYSIS

 

 

AUD/USD to advance back toward 0.75 by year-end – ANZ

 

“The terms of trade improvement and a strong domestic economy are likely to keep the AUD well supported, though a challenging risk environment will keep rallies capped.”

“We believe the aussie will be mostly rangebound through the middle part of 2022 before a global growth recovery helps propel a move back to 0.75 by year-end.”

 

 

CHART

 

 

GOLD Short Term: Upside favored

 

Technical View: Long position above 1945. Target 1970. Conversely, break below 1945, to open 1935.

Comments: The pair remains supported. Further advance favored.

Source: Trading Central
 

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCES

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/aud-usd-to-advance-back-toward-075-by-year-end-anz-202203240905
https://www.reuters.com/world/asia-pacific/boj-kuroda-repeats-view-weak-yen-benefits-japans-economy-2022-03-25/
https://www.reuters.com/business/energy/oil-drops-supply-crunch-fears-ease-trading-costs-rise-2022-03-25/
https://www.reuters.com/business/gold-steady-ukraine-worries-counter-bets-fed-rate-hikes-2022-03-23/
https://www.reuters.com/business/wall-st-opens-higher-tech-boost-investors-watch-nato-summit-2022-03-24/