Morning Market Update –Yen remains unperturbed

So Far

The United States Consumer Credit Change was registered at $8.2B and went down below the forecasted values ($15.5B) in April. The United Kingdom RICS Housing Price Balance came in at 17% and went down below the expected values (20%) in May.

Though the Japanese Yen saw some results which were below expectations, overall, the Yen grew stronger with the Japanese Bank lending (YoY) at 3.2% and going above expectations (3%) in May. Japanese Current Account n.s.a. went above expectations (¥1698.8B) in April: Actual (¥1951.9B). Last week, the foreign bond investments in Japan dropped down from a previous value of ¥732.1B to ¥-350.4B.

Japan’s Gross Domestic Product Deflator (YoY) came in line with the forecasted values (-0.8%) in the first quarter. Gross Domestic Product Growth Annualized in Japan went below the forecasted values (2.4%) in the first quarter: Actual (1%). Japan’s Gross Domestic Product (QoQ) was registered at 0.3% and went down below the forecasted values (0.6%) in the first quarter.

The Australian Imports went down to -1% in April from a previous value of 5% and caused worry for the Australian dollar. The Australian Exports came in at -8% in April against the previous release of 2% and Australia’s Trade Balance went below the expected values (1950M) in April: Actual (555M).

Coming up

Moving on for the day, we have the Economy Watchers Survey which is released by the Cabinet Office. The economic trends for the Japan have been growing gradually with recent releases and we can expect it to rise further in the day.

Switzerland’s Unemployment Rate remained steady at 3.3% and is forecasted to retain the same data in the upcoming period. A slight decline can be expected for the Swiss Franc in the markets today.

The European Central Bank (ECB) has some major releases for the day with the Gross Domestic Product coming in line with the forecasted values. The ECB Deposit Rate remains unchanged and we must watch out for the ECB’s monetary policy statement in the press conference.

Late in the day, we have the Bank of Canada’s (BoC) Governor Stephen Poloz’s speech. Canada’s Housing Starts and New Housing Price Index have been growing steadily with the recent releases and we expect the indexes to rise further in the day.

A mixed reaction can be seen for the greenback with the Continuing Jobless Claims showing negative signs as they are forecasted at 1.92M against the previous value of 1.915. On the other hand, the Initial Jobless Claims came in at 240K against the previous release of 248K.  We can expect a good support for the greenback after a downslide in the recent session.
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