This week provides critical insights into the financial landscape, highlighting key decisions by major central banks, notable market transitions by prominent companies, and expert predictions in the oil sector. Stay informed on these pivotal movements that could shape the coming months ⬇️
Interest rates remained unchanged in the UK and the US
On Wednesday, September 20, the US Federal Reserve concluded its monetary policy meeting with an announcement to maintain the key rate at 5.50%. The decision came amid concerns about inflationary pressures and the state of the global economy.
The following day, on Thursday, September 21, the Bank of England (BoE) followed suit, opting to keep its key rate at 5.25%. The UK's economic landscape, navigating the inflation challenges, played a role in the BoE's resolution.
The financial markets reacted swiftly. The EUR/USD pair hovered near a six-month low at around 1.0650, indicating the Euro's continued weakness against the US Dollar. The GBP/USD also declined in response to the rate decisions and other underlying economic factors.
Trading involves significant risk of loss.
Japan's Toshiba set to end 74-year stock market history
Toshiba, one of Japan's oldest and biggest firms, is set to end its 74-year stock market history as a group of investors have bought a majority stake.
The company has announced that a consortium led by private equity firm Japan Industrial Partners (JIP) has purchased 78.65% of its shares. Owning more than two-thirds of the firm allows the group to complete a $14bn deal to take it private.
The firm's roots date back to 1875, as a maker of telegraph equipment.
Under the deal, its shares could be taken off the stock market as early as the end of this year.
Trading involves significant risk of loss.
Oil prices approach $100 mark, but peak predicted by year-end
Oil prices are nearing the $100 per barrel benchmark, largely driving US inflation and significantly impacting gasoline, which now averages $3.87 per gallon. This increase in oil prices is also raising diesel costs, affecting shipping expenses and potentially escalating inflation rates. While some predict continued inflationary impacts, Natasha Kaneva of J.P. Morgan believes the oil price surge is approaching its peak, forecasting year-end prices around $86 per barrel.
Factors such as the summer travel rush and China's post-COVID recovery contributed to the hike, but recent trends suggest a possible decline as high gas prices influence reduced consumer driving.
Trading involves significant risk of loss.
USD/JPY jumps above 148.00 after BoJ keeps policy steady
The USD/JPY currency pair is performing well above the 148.00 mark, especially after the Bank of Japan (BoJ) decided not to make changes to its monetary policy, surprising many who expected adjustments. The US Dollar is also getting stronger, benefiting from beliefs that the US Federal Reserve will maintain its assertive approach, possibly introducing another interest rate increase this year.
On the other hand, rumours about the Bank of Japan adjusting its approach, combined with worries about interventions to support the Japanese Yen, are limiting the USD/JPY from rising further. Technical signs show that if the pair remains strong above 148.00, it could attract more buyers.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
