News

Japan Jibun Bank Manufacturing PMI came in at 49.4, above expectations (49) in May

USD/CHF trades subdued on Friday after a US report showed that inflation is approaching the Federal Reserve’s (Fed) 2% goal. Meanwhile, US President Trump complained about the slow negotiations between Beijing and Washington, which have roiled the markets.

The Australian Dollar (AUD) is consolidating against the US Dollar on Friday as fresh domestic data and monetary policy expectations for the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed) continue to drive price action.

The Euro (EUR) remains steady against the US Dollar (USD) on Friday after a softer-than-expected US Personal Consumption Expenditures (PCE) Price Index, which was close to the Federal Reserve’s (Fed) 2% goal, lifted the pair from daily lows of 1.1312.

Japan’s PMI Manufacturing was finalized at 49.5 in May, up from April’s 48.7. S&P Global’s Annabel Fiddes noted that business conditions “moved closer to stabilisation,” as declines in sales eased and firms reported improved hiring activity. Global trade tensions stemming from US tariffs continue to weigh on demand, with businesses citing “increased client hesitancy” and […]

The post Japan’s PMI manufacturing finalized at 49.5, firms eye recovery despite trade headwinds appeared first on Action Forex.

China and New Zealand are both closed for public holidays today.

Dragon Boat Festival holiday in China:

• Note that Hong Kong markets are open today.

Kings Birthday holiday in New Zealand.

This article was written by Eamonn Sheridan at www.forexlive.com.

Bank of Japan info comes via Japanese media, Nikkei (gated):

• The Bank of Japan has set aside the maximum provisions for losses on
  bond transactions
• a sign of how the central bank is preparing for
  rising interest rates
• For fiscal 2024, the
  BOJ raised the level of provisions to 100% for the first time, Nikkei
  has learned
• the provisions are funded with income from bond and other transactions
• provisions … target has usually been 50% of income … pre- fiscal 2024, the BOJ had gone as high as 95% in fiscal 2018 … in fiscal 2024, the BOJ increased provisions by 472.7 billion yen ($3.28 billion at current rates), compared with a 922.7 billion yen increase in fiscal 2023

Bank of Japan Governor Ueda

At the margin higher Bank of Japan rates are supportive for yen. The prospect of higher rates in Japan sent the yen higher in July/Aug/Sep 2024 and violently unwound some yen carry trade, impacting global markets.

This article was written by Eamonn Sheridan at www.forexlive.com.

Blake Isaacs summed his experience not hearing from employers for months as the “Glass Wall.” Here’s what experts recommend he tries doing.

Australia CFTC AUD NC Net Positions down to $-61.2K from previous $-59.1K

Bank of Japan confirms that levels of provision for possible losses on bonds transactions was 100% for fiscal 2024.

This is re the Nikkei report very early today:

• The Bank of Japan has boosted its provisions for JGB losses – braced for higher rates

This article was written by Eamonn Sheridan at www.forexlive.com.