Japan’s Aso: Must compile high quality budget for next fiscal year

Dhwani Mehta FXStreet

Speaking to reporters on Tuesday, Japanese Finance Minister Taro Aso said that the government must compile a high-quality budget for the next fiscal year.

He added that the budget should focus on expenditure reform.

Earlier today, Asahi reported that the Japanese government is mulling to hold a general election on October 17. This comes amidst the public support for Prime Minister Yoshihide Suga hitting record lows in two new opinion polls.

Market reaction

USD/JPY is losing 0.07% so far this Tuesday, currently trading at 109.84 amid a weaker US dollar and risk-off market mood, in the wake of disappointing Chinese business activity for August.

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.

GBP/USD gains traction above 1.3400 as markets bet on BoE rate hikes

The GBP/USD pair gathers strength to around 1.3430 during the Asian trading hours on Friday. The British Pound edges higher against the US Dollar on the UK government leadership transition and growing expectations of further Bank of England interest rate hikes.

EUR/USD nudges higher above 1.1400 as traders ramp up their bets on ECB hikes

The EUR/USD pair posts modest gains around 1.1430 during the early Asian session on Friday, bolstered by a softer US Dollar. The European Central Bank is grappling with elevated core inflation, forcing traders to price in more aggressive tightening despite mixed guidance from ECB officials.

Gold hovers below $4,150 amid subdued USD price action

Gold struggles to capitalize on the previous day's positive move, holding below $4,150 in the Asian session on Friday as traders await further developments surrounding the US-Iran saga. Less hawkish FOMC Minutes keep the US Dollar on the defensive and help cap any downside in the non-yielding yellow metal.

Stocks rise as chipmakers rally and Iran oil shock fears fade

Stocks found their footing because two different pressure valves opened at the same time. Oil eased as traders faded the worst-case Iran script, while chipmakers caught a separate gust of oxygen from inside the AI ecosystem itself. That distinction matters. Crude helped calm the macro room, but it was not the spark under semis.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.