Yen extends gains after hot Tokyo inflation data
The Japanese yen rose in Asian trade on Friday against a basket of major rivals, extending gains for the second straight session against the US dollar and moving away from a two-week trough on short-covering.
The gains are also underpinned by hot Tokyo inflation data, which showed increasing inflationary pressures on the Bank of Japan’s policymakers, boosting the odds of a rate hike in June.
The Price
The USD/JPY price rose 0.5% today to 143.43 yen per dollar, with a session-high at 144.18.
The yen rose 0.45% on Thursday against the dollar, the first profit in four sessions away from a two-week trough at 146.29.
Tokyo Inflation
Earlier data showed consumer prices in Tokyo rose 3.6% y/y in May, the fastest pace since January 2023, and up from 3.4% in April.
Following the data, the odds of a BOJ 0.25% interest rate hike in June rose from 35% to 45%.
Bank of Japan Deputy Governor Shinichi Uchida said the bank will continue to raise interest rates if the economy recovers from the negative impact of US tariffs, however he still cautioned that the economic outlook remains highly uncertain.
Now traders await important Japanese data on inflation, unemployment, and wages to gather more clues.
US dollar falls after growth and labor data
The US dollar fell against most major rivals on Thursday after important data, while markets assess a US court ruling to suspend Trump’s tariffs.
The US International Trade Court in Manhattan ruled today that Trump overstepped his authority by imposing an economic emergency and tariffs on other countries, and ordered the administration to stop collecting tariffs.
Nvidia’s stock also rallied following its results, which showed first-quarter earnings above estimates on strong demand on data centers.
Earlier US data showed the second reading for GDP with a 0.2% contraction in the first quarter, below the 0.3% contraction in the first reading.
US unemployment claims rose by 14 thousand last week, while analysts expected an increase of 3 thousand.
On trading, the dollar index fell 0.6% as of 19:44 GMT to 99.2, with a session-high at 100.5, and a low at 99.2.
Aussie
The Australian rose 0.3% against the US dollar to 0.6447.
Loonie
The Canadian dollar rose 0.2% as of 20:20 GMT against the US dollar to 0.7244.
Gold rallies 1.5% on weaker dollar, tariff uncertainty
Gold prices rose on Thursday as the dollar fell against most major rivals amid uncertainty after a US court order suspending most of Trump’s tariffs.
The US International Trade Court in Manhattan ruled today that Trump overstepped his authority by imposing an economic emergency and tariffs on other countries, and ordered the administration to stop collecting tariffs.
Nvidia’s stock also rallied following its results, which showed first-quarter earnings above estimates on strong demand on data centers.
Earlier US data showed the second reading for GDP with a 0.2% contraction in the first quarter, below the 0.3% contraction in the first reading.
US unemployment claims rose by 14 thousand last week, while analysts expected an increase of 3 thousand.
Otherwise, the dollar index fell 0.6% as of 19:44 GMT to 99.2, with a session-high at 100.5, and a low at 99.2.
On trading, gold spot prices rose 1.5% as of 19:45 GMT to $3345.2 an ounce.
Wall Street climbs after US court's tariff suspension
US stock indices rose on Thursday after a US court order to suspend Trump’s reciprocal tariffs.
The US International Trade Court in Manhattan ruled today that Trump overstepped his authority by imposing an economic emergency and tariffs on other countries, and ordered the administration to stop collecting tariffs.
Nvidia’s stock also rallied following its results, which showed first-quarter earnings above estimates on strong demand on data centers.
Earlier US data showed the second reading for GDP with a 0.2% contraction in the first quarter, below the 0.3% contraction in the first reading.
US unemployment claims rose by 14 thousand last week, while analysts expected an increase of 3 thousand.
On trading, Dow Jones rose 0.1% as of 16:03 GMT to 42,111 points, while S&P 500 added 0.5%, or 28 points to 5917 points, as NASDAQ added 0.8% to 19,258 points.