USD/JPY edges lower on broad-based US Dollar weakness. Tariff threats reemerge ahead of upcoming talks between the United States and Japan. The G7 meeting in Canada on Sunday sets the stage for USD/JPY’s next big move. The Japanese Yen (JPY) and the US Dollar (USD) share a complex relationship, with the interests of the two […]
Dollar accelerated its broad-based selloff in early US trading, plunging to its lowest level against Euro since 2021. The latest catalyst came from softer-than-expected May PPI data, which followed Wednesday’s downside surprise in CPI. The tandem inflation prints have further calmed fears of immediate tariff-driven price pass-through, at least for now, and are reinforcing expectations
Sterling came under renewed pressure at the start of European session, triggered by a deeper-than-expected contraction in UK GDP for April. Services sector, the economy’s dominant component, posted its first monthly decline since October. Nine out of 14 services subsectors registered falls, pointing to broad-based weakness. It’s a disappointing start to Q2 and follows weaker-than-expected
Sentiment among Japanese large companies declined sharply in the second quarter, survey data from the Ministry of Finance showed Thursday. The business survey index for all industries slid to -1.9 from +2.0 in the first quarter. The BSI for large manufacturers deteriorated to -4.8 in the second quarter from -2.4 in the preceding quarter. At
Dollar fell broadly following weaker-than-expected US inflation report for May, reinforcing the narrative that consumer prices have not yet felt the full brunt of tariff pressures. The data offered some relief that the feared pass-through from tariffs to end consumers hasn’t materialized, at least not yet. However, it wasn’t enough to shift expectations for the
Asian equities edged modestly higher on Wednesday, lifted by the announcement that US and Chinese officials reached a “framework” to implement the Geneva trade consensus and advance commitments made in the latest Trump-Xi phone call. While officials from both sides struck an optimistic tone, the agreement remains preliminary, lacking substantive details on thornier issues. US
Sterling is sold off notably today after dismal UK labor market data intensified expectations of a BoE rate cut in August. The most striking element was the -109k drop in payrolled employment—the largest non-pandemic decline since records began in 2014—coupled with a rise in the unemployment rate to its highest level since mid-2023. While wage
Japan’s machine tool orders increased for the eighth straight month in May, though at a slower pace amid weaker domestic demand, preliminary data from the Japan Machine Tool Builders Association, or JMTBA, showed on Tuesday. Machine tool orders climbed 3.4 percent year-on-year in May, after rising 7.7 percent in the previous month. Foreign orders grew
Global markets remain in a state of cautious anticipation as high-level trade negotiations between the US and China continue for a second day in London. While there’s no definitive outcome yet, mild optimism lingers. Asian equities reflected that mood, with Japan’s Nikkei and Hong Kong’s Hang Seng Index both trading slightly higher. Yet the prevailing
Japanese Finance Minister Katsunobu Kato said on Tuesday that he will appropriately conduct fiscal policy. Key quotes Seeking more Japanese Government Bond holdings by domestic investors. Will make efforts toward appropriate Japanese Government Bonds management. Crucial to seek Japanese Government Bond holdings by diverse groups. Says will appropriately conduct fiscal policy. Need to broaden investors
The cautious optimism in Asia failed to spill into European markets, as investors turned cautious ahead of today’s US-China trade talks in London. While no one expects a sweeping resolution to the broader trade conflict, hopes are centered on incremental progress—particularly around rare earths. Kevin Hassett, Director of the US National Economic Council, struck a
Japan posted a current account surplus of 2.258 trillion yen in April, the Ministry of Finance said on Monday. That was shy of expectations for a surplus of 2.560 trillion yen and was down from 3.678 trillion yen in March. Exports were up 4.0 percent on year at 8.769 trillion yen and imports slipped an
The Japanese economy showed no growth over the quarter in the first quarter (Q1) of 2025, the final reading released by Japan’s Cabinet Office showed on Monday. This reading came in above the market expectation and the previous estimate of -0.2%. The Japan’s Gross Domestic Product (GDP) fell at an annual rate of 0.2% in Q1, compared to -0.7% in the previous
There was a fleeting uptick in sentiment overnight after US President Donald Trump spoke by phone with Chinese President Xi Jinping, calling the conversation “very positive” and announcing renewed lower-level trade talks. However, the initial optimism quickly faded, with major US indexes reversing early gains to end the session lower. The Chinese readout was more
The average of household spending in Japan was down a seasonally adjusted 1.8 percent on month in April, the Ministry of Internal Affairs and Communications said on Friday – coming in at 325,717 yen. That missed forecasts for a decline of 0.8 percent following the 0.4 percent increase in March. On a yearly basis, household
Euro surged against Dollar after ECB President Christine Lagarde struck a relatively confident tone in her post-meeting press conference. She downplayed immediate trade war fallout, stating that U.S. tariffs would likely impact growth more in 2026, by which time EU fiscal expansion—particularly military spending—would help cushion the blow. Also, Lagarde emphasized that the ECB is
The US markets remain remarkably steady overnight despite a string of soft US economic releases overnight. Disappointing job and services data failed to trigger any meaningful selloff in equities, while Dollar edged slightly lower. Market pricing for Fed policy remains broadly unchanged, with a 96% chance of a hold at the upcoming meeting and a
