They are demand for a record monthly pay increase of ¥12,000, or 4% of the base pay, for 2024. JAM chairman, Katahiro Yasukochi, spoke to reporters and said that „what is important is to realise wage growth that is faster than price hikes“. This is certainly what the BOJ and Tokyo wants to hear after having pressured firms to raise wages even more next year.

For some context, Japan’s largest trade union confederation had earlier demanded for a pay increase of 5% going into upcoming the spring wage negotiations in March.

This article was written by Justin Low at www.forexlive.com.

USD

• The Fed left interest rates unchanged as
  expected with basically no change to the statement.
• Fed Chair Powell stressed
  once again that they are proceeding carefully as the full effects of policy
  tightening have yet to be felt.
• The recent US CPI missed
  expectations across the board bringing the expectations for rate cuts
  forward. 
• The labour market is
  starting to show weakness as Continuing Claims are now
  rising at a fast pace and the recent NFP report
  missed across the board.
• The US Consumer
  Confidence and University of
  Michigan Consumer Sentiment continue to fall.
• The latest US ISM
  Manufacturing PMI missed expectations by a big margin,
  followed by a disappointing ISM Services PMI,
  although the latter remained in expansion.
• The recent US Retail Sales beat
  expectations, while the US PPI missed
  forecasts by a big margin.
• The recent Fedspeak has been leaning on
  the hawkish side, but last week’s inflation report pretty much confirmed that
  the Fed might be done for the cycle.
• The market doesn’t
  expect the Fed to hike anymore.

AUD

• The
  RBA raised the cash rate by 25 bps as expected as the central bank
  judged that the move was warranted to be more assured that inflation would
  return to target in a reasonable timeframe.
• The
  CPI report recently surprised to the upside
  prompting the market to price in a higher chance of another rate hike from the
  RBA in November, which is what we eventually got.
• The
  RBA Governor Bullock has been leaning on a more hawkish side recently, but the
  central bank remains optimistic on the future outlook.
• The
  labour market continues to weaken as seen also
  recently with the bulk of jobs added being part-time.
• The
  wage price index surprised to the upside as wage
  growth in Australia remains strong.
• The
  recent Australian Manufacturing PMI fell further into contraction with
  the Services PMI plummeting back into contraction as well.
• The
  RBA Meeting Minutes released today were more hawkish
  than expected and showed that the central bank is now more worried about
  inflation expectations getting out of hand.
• The
  market expects the RBA to hold rates steady at the next meeting.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that AUDUSD finally
broke above the key 0.65 resistance and
extended the rally towards the 0.66 handle. The next target for the buyers
should now be the major trendline around
the 0.6650 level where we can also find the 61.8% Fibonacci retracement level.
That’s where we can expect the sellers to step in more aggressively with a
defined risk above the trendline.

AUDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see more closely the
breakout but we can also notice the divergence with the
MACD. This is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, we could see a pullback into the broken resistance now turned support where
the buyers will have a better risk to reward setup to target the major
trendline. The sellers, on the other hand, will want to see the price falling
back below the 0.65 level to pile in and target the lows.

AUDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the
breakout of the descending
triangle led to an increase in the bullish momentum which was
enough to finally break above the key resistance zone. More aggressive buyers
continue to lean on the red 21 moving average but
from a risk management perspective, the trendline offers a better risk to
reward opportunity.

Upcoming Events

This week is pretty empty on the data front with the US
on holiday for Thanksgiving Day in the final part of the week. Today, we have
the FOMC Meeting Minutes but it’s unlikely to be market moving given that it’s
three-weeks old data. Tomorrow, we have the US Jobless Claims report which is
probably going to be the most important release of the week. On Thursday, we
have the Australian PMIs while on Friday we conclude the week with the latest
US PMIs.

This article was written by FL Contributors at www.forexlive.com.

One of the primary concerns related to cryptocurrency is its
inherent volatility. Unlike fiat currencies that are regulated by central banks
and backed by governments, cryptocurrencies lack such centralized control.
Instead, their value is determined solely by market demand and supply dynamics.
This gives rise to frequent price fluctuations, sometimes occurring within
minutes or even seconds.

The lack of stability in cryptocurrency prices poses
challenges for both investors and businesses. Investors seeking to profit from
trading cryptocurrencies face uncertainty and risk due to the highly volatile
nature of the market. Rapid price changes can result in significant gains or
losses, making it a speculative venture. Moreover, the absence of regulatory
mechanisms means that market manipulation and fraud can occur, exacerbating
instability further.

For businesses, accepting cryptocurrencies as payment may be
appealing due to lower transaction costs and faster cross-border transfers.
However, the constant fluctuation in cryptocurrency values presents
difficulties when pricing goods and services. Calculating revenue and profits
becomes problematic, especially for small businesses operating on tight
margins. Additionally, the risk of sudden devaluations could deter businesses
from adopting cryptocurrencies altogether.

Another factor contributing to the instability of
cryptocurrencies is the lack of widespread adoption. Despite their growing
popularity, cryptocurrencies are still far from being universally accepted as a
medium of exchange. The limited number of businesses, particularly large
retailers, that accept cryptocurrencies inhibits their mainstream usage. Such
limited adoption prevents cryptocurrencies from achieving stability through
increased market liquidity and reduces their appeal as a reliable store of value.

Moreover, government regulations play a crucial role in
shaping the stability of cryptocurrencies. As governments become more involved
in the cryptocurrency space, introducing regulations and oversight, the impact
on stability becomes significant. Regulatory actions can range from imposing
restrictions on cryptocurrency trading to outright bans, as observed in certain
countries. Uncertainty surrounding government policies and their effect on
cryptocurrencies add to the instability, as investors and businesses struggle
to predict future developments.

The emergence of new cryptocurrencies further compounds the
instability within the cryptocurrency market. The ongoing creation of
alternative coins, referred to as altcoins, contributes to the fragmentation of
investments and dilutes market concentration. With thousands of different
cryptocurrencies available, each with its own features and potential value,
investors are faced with an overwhelming array of options. This proliferation
of cryptocurrencies leads to a lack of standardization and increases uncertainty,
making it challenging for any single cryptocurrency to establish widespread
stability.

In conclusion, while cryptocurrencies offer innovative
solutions and benefits, they come with inherent instability issues. Volatility,
limited adoption, government regulations, and the constant emergence of new
cryptocurrencies all contribute to the unpredictable nature of the market.
Investors and businesses must carefully
consider these factors before engaging with cryptocurrencies, understanding
the risks associated with their instability.

This article was written by FL Contributors at www.forexlive.com.

1. Supply Chain Management

Blockchain can revolutionize supply chain management by
providing a transparent and immutable system for tracking products from their
origin to the end consumer. By recording every step in the supply chain on a
blockchain, businesses can ensure authenticity, reduce fraud, and improve trust
among all stakeholders. This technology enables real-time visibility of product
movement, ensuring that consumers have access to accurate information about
their purchases.

2. Healthcare Records

Blockchain has the potential to transform healthcare records
management. Currently, patient data is stored in fragmented systems, making it
difficult to access and share information securely. By implementing blockchain
technology, patient records can be securely stored and easily accessible to
authorized parties. Moreover, patients can have control over who can access
their personal health information, enhancing privacy and security.

3. Voting Systems

Traditional voting systems often suffer from issues such as
fraud, tampering, and lack of transparency. Blockchain offers a solution by
creating a secure and transparent platform for conducting elections. Each vote
can be recorded on the blockchain, ensuring immutability and eliminating the
possibility of manipulation. This could greatly enhance the integrity and
trustworthiness of electoral processes.

4. Intellectual Property Protection

Intellectual property rights can be efficiently protected
using blockchain technology. By registering patents, copyrights, or trademarks
on a blockchain, creators can establish proof of ownership and protect their
work from unauthorized use. The decentralized nature of blockchain ensures that
the information cannot be altered or deleted, providing a robust and
trustworthy way to establish intellectual property rights.

5. Financial Services

Beyond cryptocurrencies, blockchain can revolutionize the
financial sector by providing secure, transparent, and efficient transactions.
Cross-border payments can be facilitated instantly and at lower costs,
eliminating the need for intermediaries. Additionally, blockchain-based smart
contracts can automate complex financial agreements and streamline processes
such as lending, insurance, and trade finance.

6. Energy Trading

Blockchain technology can disrupt the energy industry by
enabling peer-to-peer energy trading. Through decentralized platforms,
consumers can directly buy and sell excess energy produced from renewable
sources. This not only promotes the use of clean energy but also eliminates the
need for traditional energy providers, fostering a more sustainable and
efficient energy market.

7. Supply Chain Finance

By combining blockchain with other emerging technologies
like the Internet of Things (IoT) or artificial intelligence (AI), supply chain
finance can be greatly improved. Smart contracts on the blockchain can
automatically trigger payments when certain conditions are met, reducing
paperwork and delays. This streamlines supply chain financing and creates
opportunities for small businesses to access affordable credit.

In conclusion, blockchain
technology has far-reaching applications beyond cryptocurrency. Its
decentralized and transparent nature makes it suitable for enhancing trust,
security, and efficiency in various industries. As we continue to explore and
develop blockchain solutions, the potential for innovation and disruption
remains immense.

This article was written by FL Contributors at www.forexlive.com.

• Markets are putting too much weight on current data releases
• Need to be concerned about potential inflation persistence
• Need to cement commitment to 2% inflation target (Mann)
• More tightness in monetary policy now is important (Mann)
• Speed limit of UK economy is low now (Ramsden)
• We are very clear in distancing ourselves from market expectations (Ramsden)
• Fall in headline inflation is not a good guide on inflation trend (Haskel)

There’s a lot of pushback here against what markets are presuming will be the trend moving forward on the inflation outlook. But I reckon this is all an added safety measure to keep the door open to tighten policy further if need be. As you can tell so far, they’re not touching much on the struggling UK economic performance – which would be a hindrance to more rate hikes.

This article was written by Justin Low at www.forexlive.com.