- USD/JPY is experiencing some strength after Wednesday’s sharp drop.
- After bouncing off 114.00, strong US data, risk appetite and stimulus news from Japan support the case for a higher USD/JPY.
After enjoying its biggest one-day drop since August on Wednesday, USD/JPY is trading a bit firmer on Thursday. USD/JPY hit its highest levels since early 2017, just below the 115.00 level early in Wednesday’s session. But then reversed sharply to end the session just above 114.00, down 0.64%.
The pair has recovered a little since Thursday’s Asian session, when it continued to flirt with the 114.00 mark. It is currently trading at 114.40, up 0.3 percent on the day. With bulls eyeing a push of the 114.50 mark.
The main driver of Wednesday’s drop was a decline in U.S. bond yields
The main reason for the loss on Wednesday was a drop in US bond yields, which fell from a three-week high of 1.65 percent to below 1.60 percent.
The 10-year yield remained constant at the start of the US trading session, giving the USD/JPY exchange rate no momentum. Buying on the dips, which has been a lucrative strategy for USD/JPY traders in 2021. Additionally is likely to be the cause of the rally.
Japanese government decided on a ¥55T fiscal spending package.
Fundamental trends also appear to strengthen the argument for the USD/JPY to regain the ground it lost on Wednesday. Weekly initial jobless claims fell to a new post-pandemic low of 269,000, and the Philadelphia Fed’s manufacturing index showed strengthening business conditions in early November, according to data released on Thursday.
Meanwhile, last night’s reports from Japan revealed that the Japanese government had settled on a considerably larger than projected 55 trillion yen fiscal stimulus program, the world’s largest of its kind. According to analysts, Japan’s fiscal stimulus boosts equities but has little impact on government bond yields due to the Bank of Japan’s yield curve control program. Stronger Japanese stocks, according to analysts, boost hedging requirements, causing outflows (and JPY selling).
Risk appetite is strong elsewhere, with US markets reaching record highs, reducing demand for the safe-haven yen. Rate differentials between the US and Japan are anticipated to remain the key driver of the pair in general.
Danske Bank wrote in a report released earlier this week that they “continue to expect two Fed rate rises in 2022 (September and December), but see upside risks to this estimate, with potentially earlier and greater rate hikes than we forecast.” As a result, we believe that “ten-year US Treasury yields will hit 2% in the next 6 to 12 months.”
Microsoft clearly engages in the metaverse using Q2 earnings call
Satya Nadella, CEO of Microsoft, revealed his vision for the metaverse at the company’s Q2 2022 earnings call.
Overall, the company’s Q2 2022 filing showed a significant increase in cloud-based services. Microsoft reported $51.7 billion in revenue, a 20% increase over the previous year. Intelligent Cloud revenue was $18.3 billion, a 26 percent increase over the previous year. Azure drove a 29 percent increase in sales for server goods and cloud services. As well as a 46 percent increase in revenue for other cloud services.
Among the trends noted by Nadella on the earnings call was a “structural shift in PC demand.”
According to Microsoft CFO Amy Hood, Windows revenue from PC manufacturers increased by 25%, which was “far over expectations”. She stated that demand was being driven by the PC market’s success, particularly in the commercial category.
According to an earnings call transcript obtained on the financial blog site Seeking Alpha, Nadella envisions the metaverse as the next wave of the Internet. “Just as the initial wave of the Internet has allowed anyone to construct a website, I believe the next wave of the Internet will be a more open world where people, whether companies, game developers, or anyone else, may create their own metaverse world,” he stated.
“The first place we see this is the increasing digitization of people, places, and things to truly enable organizations automate operations at the next level,” he explained. “So, today, we have a number of examples of customers engaging with us through Azure IoT, Digital Twins, and Mesh. So that’s what you’ll see in Azure, and we’re investing heavily on it.”
Nadella sees prospects for Dynamics 365 Connected Spaces further up the software stack. This in-development technology is to control physical operations in physical areas such as a store, a connected factory, or a building. “We now have a suite that powers entirely by connected spaces,” he explained. Microsoft’s goal, he noted, is to automate physical operations.
Style.me introduces its wearable NFTs in the metaverse
Style.me, the industry-leading 3D fashion technology company, has launched a new innovative offering that enables designers to become metaverse-capable creators. In addition this latest step extends the company’s solutions into the world of digital fashion and NFTs. Moreover building on its growing success in virtual fitting and styling.
The company Style.me mints and distributes fashion NFTs
Style.me creates and distributes fashion NFTs, allowing people to wear, share, and use them across the metaverse. In addition, the company gives its partners the ability to bring their physical collections into the digital realm through bespoke “phygital” experiences.
The company Style.me’s plug-and-play technologies will allow metaverse projects to make digital fashion accessible to their communities. New experiences, such as virtual runway presentations, exhibitions, and live events, will be possible for designers and companies.
Style.me, with its 3D and AR technologies, is at the forefront of making digital fashion more accessible
Fashion NFT utilities are now limited, and Style.me is at the forefront of making digital fashion more accessible with its 3D and AR technology.
Style.me’s President, Rufus Parkinson, stated. “Style.me’s mission has been to enable consumers to see and interact with fashion in the digital environment since its inception. We believe that digital fashion and NFTs will alter the industry by allowing us to leverage our patented technology to open up a new dimension of user experiences.”
Combined with blockchain technology and the rapid expansion of the metaverse, digital fashion will explode in the next few years. Morgan Stanley estimates that the premium digital fashion sector alone will reach $20 billion by 2030.
Style.me’s goods are already in high demand, with consumption rising 386 percent in the last year, and this additional fashion NFT offering offers up even more prospects for growth in the digital fashion industry.
Metaverse: Tencent is updating QQ with the Unreal game engine
According to an upgraded version of the program, Tencent Holdings has stealthily integrated the Unreal Engine video game engine into its increasingly obsolete QQ messaging network. Hence, analysts believe the move is part of the social media and gaming giant’s entrance into the metaverse.
According to LibChecker, a third-party app inspection tool, the Shenzhen-based company updated QQ last month. The new version, which was formerly a chat app, includes portions of the Unreal Engine video game engine.
Tencent launched a new app feature called Super QQ Show, which is a 3D interactive arena where users can socialize, watch shows, and play games, at the same time as the update. As a result, observers claim the move is Tencent’s latest attempt to establish a footprint in the metaverse.
The decision also demonstrates Tencent’s commitment to resuscitate QQ, its second most popular messaging platform behind WeChat with 590 million monthly active users, which had fallen out of favor in recent years as Chinese netizens shifted their attention to short videos and other platforms.
In China, the metaverse is gaining traction. Although the country has not yet developed a national plan for the concept, like South Korea has, officials in some key cities have pushed businesses to investigate it. For example, one of four frontiers to explore in Shanghai’s future five-year plan is the metaverse.
The Super QQ Show is currently under testing by a small number of users. Tencent staff uploaded screenshots and video footage of the functionality. Which shows players dressing up their avatars in 3D, decorating their homes, and visiting others. Thus similar to Nintendo’s Animal Crossing video game franchise.
The Unreal Engine is utilized in successful games such as Bioshock and Mass Effect. Tencent owns a 40% share in Epic Games, which operates the engine in the United States. Last year, Epic Games was one of the first worldwide tech behemoths to make metaverse development a top priority. Epic’s flagship game, Fortnite, considered as one of the market’s leading metaverse initiatives.
Whales Club is a new NFT community
Sensorium launches metaverse streaming channel
Snapple unveils metaverse extension
Cryonauts are 10,000 unique NFTs to come
Samsung to unveil new space in Fortnite
Ocean Park releases new metaverse game
MonsterFactoryX is a new NFT project
Blockchain Economy Istanbul Makes Big Impact With Top Names
Apple May Have Changed Its Tone on The Metaverse After All
A Whole Franchise From Square Enix is Coming to the Metaverse
Gaming is Undergoing a Revolution, and UnixX is Playing a Role
METAG Token and MetaGamz News
TreasureDAO Exploit Reveals Problems at Core of NFT on the Platform
McDonalds Is Getting in on the Virtual Food Game and It’s Epic…
Gaming News3 days ago
Gunbrella is Coming to Steam and Nintendo Switch in 2023
Gaming News4 days ago
Sea of Stars is Coming to Windows and PS5 in Early 2023
Gaming News3 days ago
Creature Keeper Will be Released in Late 2023: We Can’t Wait
Gaming News3 days ago
Everspace 2 is the Sequel to the ROCKFISH Title of 2016
Gaming News13 hours ago
Ravenlok is a Magical Thrill Ride Coming in Early 2023
Gaming News13 hours ago
Skate Story is Coming to Windows and MAC in Summer of 2023
Gaming News5 days ago
Interactive Life-Sim Dating Game “Eternights” Comes in 2023
Gaming News5 days ago
Bounty Star is the Latest Upcoming Release From DINOGOD