- AUD TRADERS NOTES – Reserve Bank of Australia Deputy Governor Hauser is due to speak on the economic outlook tomorrow.
- US Commerce Secretary Gina Raimondo Announces $25 Billion Indo-Pacific Infrastructure Plan
- Keep an eye on Treasury Secretary Yellen’s speech on Thursday
- Bank of Japan Governor Nakamura: If consumption weakens, inflation may not reach 2% after fiscal 2025
- Australia’s April mortgage data: home loans up 4.3% m/m
- Australia’s trade balance (May) was a surplus of A$6.548 billion (expected surplus of A$5.5 billion)
- The People’s Bank of China sets the reference rate for USD/Yuan at 7.1108 today (expected 7.2436)
- New Zealand data: ANZ Commodity Price Index +1.1% m/m in May (previously 0.5%)
- EUR/USD Forecast – A drop below 1.05 is more likely than a sustained move above 1.10
- European Central Bank cuts interest rates by 25bp today, with further sharp cuts planned in coming months – Preview
- Federal Reserve’s Federal Open Market Committee (FOMC) meets next week – Preview
- Bank of Canada cuts interest rates – cuts again in July, for a total of 100bp cut by 2024
- Goldman Sachs predicts a “wall of money” will flow into the U.S. stock market in the third quarter.
- European Central Bank to cut rates today, followed by 200bp cuts by July 2025
- Morningstar says OPEC is operating from a weak position, weighing on oil prices
- Bank of Canada Rate Cuts – The Bank of Canada is not done cutting rates, with another 50bp cut in 2024 and another cut in 2025
- Bank of Canada cuts interest rates – another 75bp cut expected later this year
- Forexlive Americas FX News Roundup June 5: Nvidia closes at $3.01 Trillion market cap. Rates fall.
- In case you missed it – Saudi Aramco cuts all crude prices to Asia but raises prices to Europe
- Nasdaq and S&P both hit record highs
- Trade Ideas Thread – Thursday, June 6th, Insightful Charts, Technical Analysis, Ideas
The US Dollar fell further in morning Asian trading, with NZD/USD hitting a 3 month high. EUR, AUD, GBP, CAD and CHF (most notably) all rose. The Yen also saw buying, with USD/JPY briefly dropping to around 115.40.
There was no new news related to this, there was some data from Australia but this did not move the FX.
The Bank of Japan also weighed in, with Nakamura, a prominent dove on the Bank of Japan’s Policy Board, expressing the following concerns:
- He believed that unless consumption recovered, the Bank of Japan’s 2% inflation target would not be achieved beyond fiscal 2025.
- The pass-through from wages to inflation remains weak, meaning household purchasing power and consumption are also weak, and the bank would like to see inflation-adjusted consumption turn positive in order to normalise monetary policy.
-
He said based on current data, it is appropriate to maintain mitigation policies as they are.
Nakamura’s assessment contrasts with that of his colleague Himino yesterday.
USD/JPY bounced back a bit, back towards the 155.70 area.
