Japan inflation up and yen and yuan slide
(Don’t believe any rhetoric about the BoJ raising rates or curtailing JGB purchases as neither will habben in any meaningful way-so they raise it 10 basis pointsBFDI’d be moar worried about Norinchukin Bank selling it’s Euro/US Treasuries ($63b) into the open market >>21051572 pb Japan's Norinchukin Bank to sell $63bn of U.S. and European bonds
Strangely missed by most yesterday and it habbened the day prior. And they likely told everyone before they sold them(no one does that-you always here after it occurs)to put pressure on the FOMC to cut Prime Rates as it’s not an insignificant amount as it would spike our Treasury Yields unless done berry slowly-add in muh Yen us back and just below the last intervention level at 160/US$ and there’s quite a lot going on with muh Banking system in Japan)
Japanese inflation goes under the microscope on Friday, with scrutiny likely to be magnified more than usual given the yen's slide toward record lows, rising oil prices and the Bank of Japan's cautious approach to normalizing monetary policy. Sentiment across the continent on Friday may be clouded by Thursday's fall in U.S. stocks and bonds and rise in the dollar, tempting investors to lock in gains - Asian stocks hit a two-year peak this week, and world stocks hit all-time highs. Trade tensions between China and the West continue to unnerve investors. German Economy Minister Robert Habeck stirred the pot on Thursday, saying in Seoul that South Korea and Germany both aim to diversify away from China, broaden their raw material suppliers and reduce their dependence on critical products.
Oil prices continue their march higher, with U.S. WTI and Brent crude futures both hitting their highest levels since April 30. WTI is now up 13.5% from its June 4 low and has risen in all but two of the 11 trading days since then, and Brent is up 12% and has risen in all but three sessions. With the yen near record lows against the dollar, the rising dollar-denominated price of oil is crucial for a country that imports well over 90% of its energy.The yen fell back to 159.00 per dollar on Thursday, deep in 'intervention' territory.
(this is laughable but not a surprise at all).
The U.S. Treasury on Thursday said no major trading partner appeared to manipulate its currency last year, but it added Japan to a foreign exchange "monitoring list," alongside other Asian countries China, Vietnam, Taiwan, Malaysia and Singapore. The latest inflation figures from Japan, meanwhile, are expected to show annual core inflation stripping out food and energy likely rebounded in May to 2.6% from 2.2% in April. Headline inflation, at 2.5% in April, likely rose also - Goldman Sachs economists are penciling in 2.9%.
Friday's Asia/Pacific regional calendar also sees the release of the first PMI reports for June, namely preliminary readings of factory and services activity this month in Japan, Australia and India.
In the corporate world, Softbank Group holds its annual general shareholders meeting.
Here are key developments that could provide more direction to markets on Friday:
https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-06-20/
https://tradingeconomics.com/japan/currency