​EBC Markets Briefing | Yen struggles with Takaichi; Silver extended strong rally

The yen wallowed near a record low versus the Swiss franc on Thursday after Japan's premier Sanae Takaichi said she wants the central bank to go slow on interest rate hikes.

Finance Minister Satsuki Katayama issued a fresh warning on currency movements as it moved toward the key threshold of 155 per dollar, inching closer to levels where authorities last intervened in markets.

But with a key price gauge moving above 2% for three and a half years, the government will have to make sure to counter the impact from inflation with its upcoming economic package.

Switzerland is close to securing a 15% tariff on its exports to the US, in what would be a relief for the country which was hit with a punishing 39% levy in August, according to people familiar with the matter.

The European country can hardly afford to lose too much time in its bid to get the levy reduced. There are emerging signs of the damage caused by tariffs given a likely contraction in Q3 GDP.

Swiss exports to the US rebounded sharply in September, with pharmaceutical companies ramping up their shipments to get ahead of potential tariffs, pushing total exports up 3.4% year on year.

The franc has been constantly increasing against the yen, underling the latter's slipping safe-haven status. Before the 50 SMA is breached, the risks to the pair will remain skewed towards the upside.

Asset recap

As of market close on 12 November, among EBC products, UnitedHealth Group shares gains after new CFO outlined a turnaround plan focused on financial discipline, portfolio simplification, and tighter Optum integration.

Gold and silver prices kept rising, bolstered by expectations that an end to the US government shutdown and resumption of economic data could set the stage for the Fed to trim interest rates next month.

Meta plans to invest more than $1 billion to build a 700,000-square-foot data centre campus in Beaver Dam, which aggravates concerns about its spending spree.

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