Asia Summary and Highlights 26 June
Tokyo ex fresh food & energy CPI 1.9% y/y
Asia Session
Tokyo CPI remains capped by 2% with ex fresh food & energy at 1.9% y/y. Headline CPI for June arrived at 1.7% y/y while ex fresh food rose 1.6% y/y. It seems to suggest underlying inflation is gathering momentum with consumption recovery and energy cost being spread among business. USD/JPY is trading 0.12% lower at 161.60 as market participants are unsure where to go from here.
Major equities are all in the red on Friday. The move seems to be triggered by OpenAI delaying IPO but in fact it is fundamentally driving by Fed hakiwsh tilt and subsequent market participants positioning. AUD/USD is trading 0.32% lower at 0.6888. NZD/USD is trading 0.17% lower while USD/CAD slips 0.04%. Oil is lower this session so far. Else, EUR/USD down 0.01% and GBP/USD is up 0.04%.
North American session
The USD opened firm, but slipped after the US data. The data was at first glance mostly firm, with above consensus gains of 0.7% for May personal income and spending, an on consensus rise in core PCE prices, a fall in initial claims to 215k from 227k, a firm 1.3% rise in May durable goods orders ex transport despite a 4.5% fall overall on a reversal in aircraft, and an upward revision in Q1 GDP to 2.1% from 1.6%. However the GDP revision was largely due to a downward revision in imports, and a sharp downward revision to consumer spending to 0.5% from 1.4%, fully on services, caught market attention.
EUR/USD picked up from near 1.1340 to 1.1380, but a dip in USD/JPY to 161.60 from 161.80 was largely reversed. EUR/GBP was stable but EUR/CHF marginally weaker. USD/CAD slipped to 1.42 from 1.4250 while AUD/USD rose to .6920 from .69.