DXY & Forex

Summary: BoJ is likely to hold at 0.75% on April 28 while signaling future rate hikes if conditions permit; June action remains possible, with some officials leaning toward a near-term move amid inflation risks from geopolitical shocks and a higher forecast. Abstract: The Bank of Japan is expected to keep its policy rate at 0.75% at the April 28 meeting, signaling eventual hikes as conditions permit; discussion centers on timing and a potential June move, in light of geopolitical tensions and an updated inflation outlook.

Hong Kong is unveiling its first five-year development plan to enhance its RMB business and wealth management hub status. Legislative reforms will improve liquidity and competitiveness, as Hong Kong seeks to strengthen its role in global finance amidst changing geopolitical dynamics.

Gate News: According to the latest Gate TradFi data, NZDCHF (NZD/CHF) has surged by 0.5% in a short period. Current volatility is significantly higher than recent averages, indicating increased market activity.

The U.S. Senate Banking Committee will hold a confirmation hearing for Federal Reserve chair nominee Kevin Warsh on April 21. Political uncertainty surrounds his nomination due to Senator Tom Tillis's opposition. Key macroeconomic data releases are also expected this week.

Taiwan is evaluating whether to allow publicly listed companies to pay dividends directly in U.S. dollars, which is expected to reduce foreign investors’ currency-exchange costs and help stabilize the exchange rate, but the timing of the policy remains unclear. This change would benefit foreign investment firms, especially TSMC, but local investors face operational inconveniences, and the regulatory support still needs to be improved. The measure is intended to enhance the appeal of Taiwan’s stock market to keep pace with competition in global capital markets.

Japan's 40-year government bond yield dropped to 3.775%, down 7 basis points, while the 20-year bond yield decreased to 3.230%, falling by 3.5 basis points.

Gate News: According to the latest Gate TradFi data, USDCLP (US Dollar vs Chile Peso) has surged by 1.5% in a short period. Current volatility is significantly higher than recent averages, indicating increased market

Dubai, as the economic core of the United Arab Emirates, is facing wartime challenges. Since the end of February, it has been hit by large numbers of drone and missile attacks, affecting tourism and oil trade. This has led to fewer international flights and concerns about capital outflows, as the UAE is actively negotiating with the United States on a currency swap mechanism to address potential liquidity crises.

Canadian Prime Minister Carney addressed changing Canada-U.S. relations, noting past advantages have become disadvantages due to the U.S. raising tariffs. He urged for diversifying trade to mitigate reliance on the U.S. and emphasized the need for strategic planning over hope.

Gate News: According to the latest Gate TradFi data, USDTHB (United States Dollar vs Thai Baht) has surged by 0.5% in a short period. Current volatility is significantly higher than recent averages, indicating increased market

Oil prices rose sharply by over 7% amid escalating US-Iran tensions, causing a drop in US equity futures and a stronger US dollar against major currencies. Risk-sensitive assets faced significant losses.

Gate News: According to the latest Gate TradFi data, USDTHB (United States Dollar vs Thai Baht) has surged by 0.5% in a short period. Current volatility is significantly higher than recent averages, indicating increased market

French Finance Minister Roland Lescure has called on European banks to aggressively develop euro-based stablecoins and tokenized deposits to challenge the overwhelming dominance of the U.S. dollar in digital payments. Key Takeaways: Roland Lescure urged EU banks to launch euro stablecoins

UBS analysts predict the Federal Reserve will cut interest rates by 50 basis points by 2026, despite rising energy prices. Fed Chairman Powell suggests limited tightening is needed, focusing on core inflation evidence before cuts. The forecast for Treasury yields indicates potential downward movement.

The Federal Reserve is highly likely to keep interest rates steady in April, with a 99.5% probability. Looking ahead to June, there's a 94.1% chance of maintaining rates, a 0.5% chance of an increase, and a 5.4% chance of a cut.

Fed Governor Christopher Waller expressed his readiness to maintain interest rates steady until 2026 if inflation remains a significant concern, despite a stagnant labor market. He warned about prolonged inflation and potential job losses amid ongoing Fed leadership discussions.

Gate News: According to the latest Gate TradFi data, USDKRW (US Dollar vs South Korean won) has dropped by 1% in a short period. Current volatility is significantly higher than recent averages, indicating increased market

Gate News message, April 17 — U.S. 5-year Treasury yields (benchmark measure of medium-term U.S. government borrowing rates) fell 10 basis points intraday.

Gate News message, April 17 — The U.S. Dollar Spot Index has wiped out all gains accumulated since the outbreak of the Middle East conflict.

Gate News message, April 17 — The rate swap market is signaling a dovish shift, with current pricing reflecting expectations for 15 basis points of Federal Reserve rate cuts by December.