Morning wrap (14.07.2023)

• Indices from Asia-Pacific traded mostly mixed today - Japanese Nikkei declined 1.0%, S&P/ASX 200 moved 0.3% higher, Kospi is up 1.4%, indices from China traded 0.7% lower

• South Korea, Australia, and Hong Kong witnessed share price increases, contributing to a weekly gain of over 4% in the MSCI Asia Pacific Index. This was driven by signals of Beijing's efforts to stimulate the Chinese economy.

• US dollar continued to decline with EURUSD remaining above 1.12

• Japanese Yen has appreciated against most currencies. USDJPY remains at a multi-month low around 137.8.

• Hideo Hayakawa, a former chief economist and director at the Bank of Japan, anticipates adjustments to the BOJ's yield curve control program in response to stronger-than-expected inflation.

• According to the media report, there is a rising speculation that the Bank of Japan could raise its inflation forecast for FY2023 above 2%.

• China's top diplomat, Wang Yi, stated that China-Australia relations have stabilized and improved.

• Fed's Waller expects two additional 25 basis points rate hikes this year, citing positive employment and economic momentum.

• Fed's Waller views the recent moderation in CPI data as positive, but notes the need to assess if it will persist.

• James Bullard, the President of the Federal Reserve Bank of St. Louis has announced his resignation on Thursday (July 13) and will leave the bank effective Aug. 14. He is known as one of the most vocal advocates over the past two years for stronger moves to fight inflation

• The main cryptocurrencies are consolidating at their peaks following yesterday's victory of XRP against the SEC in court.

BTC closed yesterday at the level of $31,400, which coincided with the upper boundary of the recent consolidation channel. It was the highest historical closing this year. If BTC manages to stay above this level, a continuation of the upward movement is possible.