{
}
Japan is emerging from a prolonged deflationary period, with February's industrial production rising 2.5% y/y, driven by demand for manufactured goods ahead of new US tariffs. However, uncertainties surrounding US trade policies are impacting global sentiment and expectations for the Bank of Japan's rate hikes, with a forecast suggesting USD/JPY may end the year lower at 145.
Rabobank has revised its Euro-to-Dollar forecast upward, anticipating a shift in sentiment following Germany's significant fiscal plans, which could see over €1 trillion spent in the next decade. The bank now expects the Euro to rise approximately 500 pips, with potential for it to reach the 1.10-1.20 range by year-end. This change comes as global capital flows into Eurozone markets increase, amid a reevaluation of the U.S. economic outlook.
Rabobank's Jane Foley indicates that the US dollar is under pressure, with potential for short-term pullbacks against currencies like the euro, yen, and pound. Recent market movements suggest a shift away from US risky assets due to growth concerns, while the Federal Reserve faces challenges balancing inflation expectations with interest rate decisions.
Germany's Bundestag is poised to pass a constitutional amendment allowing increased borrowing for defense and a €500 billion infrastructure fund, while the UK faces budget cuts. The EUR/GBP is expected to remain below 0.8495, with potential for three more Bank of England rate cuts this year, contingent on improved UK growth prospects.
Rabobank's FX analyst Jane Foley indicates that USD/JPY is on a downtrend, with a year-end forecast of 145.00, despite recent corrective activity. The Bank of Japan's upcoming policy meeting is crucial, as any signs of rate hikes could impact the currency pair, while concerns over a slowing US economy and potential tariffs may temper JPY bullishness.
Barclays favors German blue-chip stocks over French ones, citing France's weak fiscal fundamentals and political instability. As borrowing costs rise, concerns grow over the French government's ability to pass a budget, with potential implications for market stability and investor confidence. The risk of bond vigilantes looms if political uncertainty persists, potentially widening the yield spread between German and French debt.
Jane Foley
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
japan's economy faces uncertainty as tariff concerns impact currency outlook
15:33 31.03.2025
Rabobank raises euro to dollar forecast amid Germany's fiscal changes
10:39 21.03.2025
us dollar faces challenges as global currencies gain ground
Swedish Krona
British Pound Sterling
Japanese Yen
Euro
Norwegian Krone
End Federal Reserve USD
Jane Foley
11:04 19.03.2025
Germany set to ease borrowing restrictions amid UK budget tightening concerns
12:08 18.03.2025
usd jpy forecast to reach 145 by year end amid market uncertainties
15:02 17.03.2025
barclays favors german stocks amid concerns over french political instability
10:36 29.11.2024
Trending
Subcategory
Corporate News
Stock Market Updates
Industry Trends
Industry Mergers & Acquisitions
Finance Mergers & Acquisitions
Banking Regulations
Global Financial Events
Workplace Trends
Retail and Consumer Goods
CEO Changes
Market Analysis and Predictions
Central Bank Actions
Startups & Entrepreneurship
Global Trade Developments
Government Policies
Domestic Politics
Financial Scams and Security
Private Equity Deals
Government Economic Policies
Supply Chain Management
Countries:
Companies:
JPMorgan Chase & Co.
Tesla, Inc.
Barclays PLC
Credit Suisse Lux Digital Healt
UniCredit S.p.A.
Bank of America Corporation
UBS Group AG
Deutsche Bank Money Market PP
The Goldman Sachs Group, Inc.
Apple Inc.
Banco BPM S.p.A.
BNP Paribas SA
Wells Fargo & Company
Commerzbank AG
Banco Santander, S.A.
CREDIT AGRICOLE
Lloyds Banking Group plc
Credit Suisse Strategic Income I
Amazon.com, Inc.
SpaceXCoin USD
Currencies:
United States Dollar
Euro
British Pound Sterling
Swiss Franc
Chinese Yuan
Indian Rupee
Japanese Yen
South Korean Won
Danish Krone
Hong Kong Dollar
Australian Dollar
Singapore Dollar
Offshore Chinese Yuan
Canadian Dollar
Mexican Peso
Russian Ruble
Chilean Peso
United Arab Emirates Dirham
Norwegian Krone
Swedish Krona
People: