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The Japanese yen has hit a new low since 1998

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The yen continues to fall against the U.S. dollar on the background of the soft monetary policy of the Bank of Japan. For the first time since 1998, the exchange rate exceeded the mark of 139 yen per dollar. Over the last year, the yen has fallen in value by nearly 25

The dollar/yen exchange rate on the Forex market exceeded the mark of 139 yen for the first time since September 1998. The dollar rose 1.4% to 139.4 yen per dollar.

Japan’s currency has depreciated by about 20% since the beginning of this year, and the yen has depreciated against the dollar by a total of almost 25% over the past year. The main reason for this trend was the divergence between the super-soft monetary policy of the Bank of Japan and expectations of further tightening of the U.S. Federal Reserve policy in order to stop inflation growth.

Last month, the Fed raised its benchmark interest rate by 75 basis points, the sharpest increase since 1994. In all, the Fed has raised interest rates by 150 basis points since March. U.S. inflation accelerated to a new, 40-year high in June. For the year, prices rose 9.1% after an 8.6% gain in May and against a forecast of 8.8%. Rising inflation is provoking the U.S. Federal Reserve to further tighten monetary policy, leading to increased demand for the dollar.

Japan’s central bank cannot afford to raise rates as easily because of its high debt burden. High interest rates on government debt servicing are a critical component for Japan. Debt service costs account for a quarter of the country’s budget.

Japan’s interest rate has remained negative since 2016. The country’s regulator is pursuing an extremely soft policy, keeping the lending rate virtually at minus levels to stimulate the economy. At its June 17 meeting, the Bank of Japan left the main parameters of monetary policy unchanged. 

The short-term interest rate on commercial bank deposits at the Central Bank was left at minus 0.1% per annum; the target yield on Japan’s ten-year government bonds – about zero. The Bank of Japan also confirmed that it is ready for further policy easing, if necessary.

The exchange rate of the dollar may continue to grow up to 140 yen per dollar. This mark may trigger profit taking on long dollar positions, as it is considered a red line, the crossing of which increases the risk of a coordinated intervention to support the yen.

Forex

ITB (International Trading Brachium) Broker Announced Its YouTube channel

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ITB (International Trading Brachium)

(Mahe, Seychelles-March 08, 2023) – ITB BROKER, LLC, an international forex broker, has announced that with our community growing, we believe that this will be the most effective medium to communicate with and so, we’re proud to announce the launch of ITB YouTube channel .

When a picture speaks a thousand words, How about a video?

  • Throughout our community building initiative, we strongly believe in video as our means of communication. Video has played a pivotal role in describing our futuristic services to our audience and in communicating our disruptive vision to potential traders or investors.
  • Over the next few weeks, we will be launching interesting videos on upcoming ITB features, bonuses, partnership or IB announcements and financial market expert interviews.
  • YouTube is a great place to pick up forex trading tips and learn how to use them in the real world.

There are a number of YouTubers that make great educational videos, perfect for beginners or those considering taking up forex trading. ITB group with over 10 years of financial experience provides you with useful tips and hints of forex trading via its  YouTube channel.

About ITB

ITB Broker or ITBFX is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services.

Founded in 2017, the company’s mission is to provide enthusiastic traders with access to the world’s largest and most liquid market by offering innovative trading tools, applying excellent trading platform, meeting strict financial standards, and striving for the best online trading experience in the market.

In addition, ITB offers educational courses on FX trading and Cryptocurrencies on academy section of ITBFX website.

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Forex

U.S. budget deficit totaled $262 billion in February 

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U.S. budget deficit

According to a report from the U.S. Treasury Department, the U.S. budget deficit in February was $262,434 billion compared to a $38.8 billion deficit in January. The Dow 30 also had problems.

Analysts at DailyFX suggested that the nation’s budget deficit for February was expected to be $256 billion. A year earlier, in February, the U.S. posted a budget deficit of $216,590 billion.

According to the GAO report, U.S. government spending rose 3.5 percent year over year last month to $524.548 billion, while revenue, in contrast, declined 9.5 percent to $262,114 billion.

Earlier, the U.S. edition of the Washington Post published an editorial stating that the new draft budget proposed by the Biden administration undermines U.S. national security and its ability to invest in the future, because it suggests a further growth of the U.S. national debt.

The WP editorial board noted that the new draft budget assumes a $2 trillion budget deficit, including due to the high cost of providing health insurance to the elderly of the baby boomer generation.

Earlier we reported that the EU has agreed to reduce energy consumption by 11.7% by 2030.

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The EU has agreed to reduce energy consumption by 11.7% by 2030

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reduce energy consumption

The European Union has agreed to reduce the bloc’s energy consumption by 11.7 percent by 2030, Reuters reported.

“This will mean a real change in favor of the climate and to the detriment of Putin,” the Danish Niels Fulsang, the European Parliament’s lead negotiator, told the agency.

Initially, in 2021, the EU proposed to reduce consumption by 9%, but in May 2022, against the background of events in Ukraine, increased the target to 13% to quickly abandon Russian energy, writes Forbes. The European Parliament considered it necessary to reduce consumption by 14%. The DAX Index also had problems.

Some EU countries have continued to insist on a 9% cut. An all-night negotiation between the EU and the European Parliament resulted in a compromise: the energy consumption of EU end-users, such as households and businesses, must be 11.7 percent lower than expected in 2030.

The agreement must pass final approval by the European Parliament and EU countries before it can become legally binding.

Earlier, we reported that consumers expect lower inflation in the eurozone, higher wages.

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