Japan to decide Thursday whether to lift virus emergency – NHK

Dhwani Mehta FXStreet

The government is expected to decide on Thursday whether to lift the coronavirus pandemic-induced state of emergency, as the emergency in Tokyo and surrounding regions is set to end on March 21, the Japanese broadcaster NHK reported on Tuesday.

This comes after Tokyo reported 175 new COVID-19 cases Monday, falling below 200 for the first time in a week and a day after reporting 239 infections. On Sunday, the daily number of newly confirmed cases nationwide came to 989, standing below 1,000 for the first time in six days.

Separately, Japanese Finance Minister Taro Aso said that the Cabinet has approved cash handouts.

Market reaction

USD/JPY is holding onto minor gains above 109.00, despite a pullback in the US dollar across the board amid a drop in the Treasury yields.

USD/JPY Price Analysis: Bears seek out a significant retracement

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

160.80: Japanese Yen remains close to nearly two-year lows

USD/JPY inches lower after four days of gains, trading around 160.60 during the Asian hours. The USD/JPY pair surged to 160.80 the previous day, marking its highest level since July 2024 and significantly heightening speculation that Japanese authorities could soon intervene to support the struggling Yen.

Australian Dollar remains in positive territory after paring recent gains

AUD/USD pares its daily gains, remaining in the positive territory and trading around 0.7010 during the European hours. The pair appreciated as the Australian Dollar received support from prevailing hawkish sentiment surrounding the Reserve Bank of Australia’s policy outlook.

Gold retreats below $4,250 as USD benefits from hawkish Fed

Gold (XAU/USD) stays on the back foot in the second half of the day and trades in negative territory below $4,250. Although easing tensions in the Middle East help XAU/USD limit its losses, the broad-based USD strength in the Fed aftermath doesn't allow it to gain traction.

Bitcoin slips below $64,000 as hawkish Fed stance weighs on risk appetite

Bitcoin remains under pressure, extending its correction, trading below $64,000. The US Federal Reserve left interest rates unchanged but struck a hawkish tone on Wednesday, dampening the risk sentiment.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.