- US Senate passes gun safety legislation, heads now to a House vote and then Biden to sign
- Goldman Sachs on the markets/BOJ stalemate pressuring Japanese yields ... and the BOJ
- Citadel makes a low-frequency trade - the firm is moving its headquarters to Miami
- Goldman Sachs new "key upside risk" to inflation expectations (spoiler - political ads)
- PBOC sets USD/ CNY reference rate for today at 6.7000 (vs. estimate at 6.6964)
- ICYMI - Bridgewater increases short bets against Europe stocks
- Japanese official says weak yen is having an impact on the price of imported goods
- Japan services PPI 1.8% y/y (prior 1.7%)
- Japan CPI data for May: Headline 2.5% y/y (expected 2.9%)
- UK data - consumer confiudence in June is -41 vs. -40 expected
- Blackrock: ECB planned policy normalization underappreciates the risk of the energy crisis
- US EIA says update on weekly DOE oil inventories report will be published on Monday
- Oil - "traffic data in China suggests demand is improving"
- Natural gas - Germany has raised its alarm level on supply disruption (ICYMI)
- Goldman Sachs is waiting for the US NFP to buy yen
- Heads up for NZD traders - New Zealand markets closed for a holiday today
- Reserve Bank of Australia Governor Lowe is speaking on Friday, 24 June 2022
- Trade ideas thread - Friday 24 June 2022
- Fed stress test - Fed says all banks passed
- Forexlive Americas FX news wrap: PMIs miss as the focus shifts from inflation to growth
USD/JPY basically did a lap today, rising soon after the Japanese data was published but soon dropping back again to be little net changed for the session
Japanese CPI for May was mixed. Headline inflation was lower than estimates while core’ (Japanese core inflation excludes fresh food) had its second month in a row above 2%. ‘Core-core’ (excluding fresh food and energy and which is closest to the US measure of core CPI) came in at a relatively (for Japan) strong 0.8%. Only a week ago the Bank of Japan reaffirmed, again, its commitment to its current loose policy. The Bank is being pressure on its YCC though. While it has the yield on 10-yr JGBs held to the desired ceiling yields are popping up on those maturities not being targeted by the Bank. There are plenty in the market looking for the BOJ to be forced into relenting on YCC. The next meeting is not until July 20-21 though and I can’t see any change outside a scheduled meeting from the BOJ. Stay tuned though!
Data flow otherwise was very light; the UK consumer sentiment survey a record low. Cable is net up a few tics on the session though.
News flow was pretty much the same.
Non-yen FX major FX was subdued.
The People's Bank of China injected funds via OMOs today (see USD/CNY post above))
USD/JPY 10 minute candles:
