Asia Summary and Highlights 5 July
UK election exit polls show Labor wins and conservative likely having fewest seats since founded
Japan finance minister Suzuki says weak yen is pushing up import costs
Asia Session
The UK election exit polls are showing a major victory for the Labor and the Conservatives having the least seat since party founded. Sterling was little changed as the results have been in forecast for weeks. While the final results are yet to be released, the change of governing party seems inevitable. GBP/USD is trading 0.08% higher at 1.2769. EUR/USD is up 0.08% also.
The Japan May household spending came in lower than expectation of +0.1% to -1.8% y/y. It continues to point towards Japanese consumers unwilling to purchase products at a higher price despite wage picking up. It would weigh on BoJ's pace of monetary policy. We also have the usual jawboning from Suzuki saying weak yen is pushing up import costs. USD/JPY is correcting further and is trading 0.35% lower at 160.64 with U.S. Treasury yields reopened higher and JGB yields slips. Else, AUD/USD is up 0.08% despite the PBoC signed agreements with major banks/institutions to borrow Chinese treasury bonds, which seems to aiming towards a sale of bonds to curb the last strength. NZD/USD and USD/CAD are unchanged.
North American session
Nothing of any real note to report in the European afternoon with the US on holiday. FX rates were essentially stable, although the CAD managed marginal gains.