Morning Market Update – Greenback May Start Recovering

So Far

South Korea’s Consumer Sentiment Index went up from a previous value of 101 to 108 this month. There has been a mixed reaction to the Japanese Yen with the Japanese National Consumer Price Index (YoY) meeting the forecasted values (0.4%) in April and the Japanese Tokyo Consumer Price Index (YoY) rising up from a previous -0.1% to 0.2% in May.

Japanese Corporate Service Price (YoY) came in at 0.7% and went below expectations (0.9%) in March. Japanese Tokyo CPI ex Food, Energy (YoY) came in line with the forecasted values (0%) in May. Japan’s inflation looks sustained as of now. The People’s Bank of China (PBOC) set the Yuan reference rate/midpoint rate at 6.8698 versus Thursday’s fix of 6.8695.

Coming Up

Moving on for the weekend, we have the dollar making a major impact with the Gross Domestic Product Price Index forecasted at 2.2% versus the previous release. The Personal Consumption Expenditures Prices continues to remain at 2.4%. The Core Personal Consumption Expenditures are in line with the previous release of 2.0%.

The Gross Domestic Product Annualized showed better results when compared to the previous release of 0.7%. This should boost the greenback for the day. The Durable Goods Orders excluding Transportation will be released later in the day and any results above 0.8% will have a major impact for the greenback. The Michigan Consumer Sentiment Index slightly declined when compared to the previous release and we may see a little pullback in the markets.

 
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