News

Major currencies are not doing all too much in the new day with lights changes being observed ahead of European trading. This comes after the dollar fell back again yesterday, continuing the back and forth movements since the start of the week. That is exemplified by USD/JPY which fell over 150 pips on Monday before recovering that on Tuesday and then going back down by 150 pips again yesterday.

The pair is back up slightly to 143.00 again but traders are still left having to digest the softer US economic data yesterday.

Adding to the mix is still trade uncertainty with the appeals court ruling on Trump’s reciprocal tariffs also needing a response in the coming day(s). Then, there’s also watchful eyes on a potential Trump-Xi phone call before the weekend. Will it actually happen?

And before we wrap up the week, there will be the US non-farm payrolls data tomorrow.

All of that will keep things interesting in what has been a rather back and forth week thus far for FX trading.

This article was written by Justin Low at www.forexlive.com.

ECB is set to lower its deposit rate by 25 bps to 2.00% today, marking the eighth cut of this easing cycle and bringing policy deep into neutral territory. With inflation falling back below the 2% target in May, the case for further easing is clear in the near term. However, the main focus will […]

The post ECB to cut, focus on Lagarde’s signal for a July pause appeared first on Action Forex.

China’s Caixin PMI Services rose modestly from 50.7 to 51.1 in May, aligning with expectations. However, the gain in services was not enough to offset the drag from manufacturing, as PMI Composite slipped into contraction at 49.6, its first reading below 50 since December 2022. Wang Zhe of Caixin Insight Group noted that the manufacturing […]

The post China’s Caixin PMI composite falls to 49.6, contracts for first time since 2022 appeared first on Action Forex.

Real wages fell for a fourth consecutive month in Japan in April

-1.8% y/y,

• from -1.8% also in March and -1.5% in
  February

Base pay +2.2% y/y, the fastest in four months

• Overtime pay +0.8%

Total average cash earnings, or nominal pay, +2.3%

• from +2.3% also in March

—

Inflation-adjusted real wages are a key determinant of households’ purchasing power. The prolonged decline will troubl;e Bank of Japan rate hike desires.

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

Minneapolis Fed President Neel Kashkari:

• labour market is showing some signs of slowing down
• inflation rate still not back to 2% target
• there is persistent uncertainty over the economy
• Fed must stay in wait and see mode to assess how economy responds to the uncertainty
• the bond and equity markets are sending conflicting signals

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