​EBC Markets Briefing | Yen softens again; AMD shares hit all-time high

The yen was headed for a third consecutive daily decline on Friday in tentative trade, after Trump said that Israel and Lebanon had agreed to a 10-day ceasefire – a sign of progress in a peace deal with Iran.

Governor Kazuo Ueda steered clear of signalling a rate hike was on the cards this month, instead highlighting low real interest rates. Therefore, it could stand pat at least until June.

While rising crude oil prices bite by worsening terms of trade, ⁠this pressure must be weighed against robust corporate profits and the government's stimulus measures, he said.

An official survey shows the country's consumer confidence worsened in March for the first time in three months. Analysts believe concerns over spiking oil prices are behind the results.

Citi warns that if the yen drops below 160 per dollar, Tokyo would likely intervene in currency markets to buy yen and push the exchange rate back to around 155 per dollar.

Finance Minister Satsuki Katayama says that she held close discussions on forex issues with US Treasury Secretary Scott Bessent and that authorities are prepared for "bold" action if needed.

The yen stayed well below the 50 SMA, but bullish MACD divergence indicated a potential reversal. As such, a forthcoming rally towards 158.6 per dollar seems likely.

Asset recap

As of market close on 16 April, among EBC major products, Advanced Micro Devices shares led gains. They closed at an all-time High in the longest winning streak since 2005 after Bernstein raised the target price.

Charles Schwab reported Q1 revenue that slightly missed estimates even as the brokerage continued to attract the wealth of retail investors amid geopolitical uncertainty.

First Trust ISE Cloud Computing Index Fund extended gains. Michael Burry is buying beaten-down software stocks, saying the recent decline was driven by technical factors rather than weak business fundamentals.

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