Yen extends gains amid trade uncertainty
The yen rose in Asian trade on Thursday against a basket of major rivals, extending gains for the second straight day against the US dollar amid active haven demand with mounting global trade uncertainty.
Recent Japanese consumer prices data 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 fell 0.2% today to 142.53 yen per dollar, with a session-high at 142.97.
The yen rose 0.85% on Wednesday, the fourth profit in five sessions following weak US jobs data for May.
Trade Developments
US President Donald Trump described Chinese President Xi Jinping as a difficult man to make a deal with, exposing existing tensions between both sides ahead of an anticipated phone call.
Japanese Rates
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 more Japanese data on inflation, unemployment, and wages to gather additional clues.
US Rates
Earlier US data showed the services sectors shrank for the first time in a year, while the private sector added far less jobs than expected last month.
According to the Fedwatch tool, the odds of a Fed 0.25% June interest rate cut stood at 2%, while the odds of a July rate cut stood at 24%.
Now traders expect 50 basis points of US rate cuts overall this year, starting October.
Ripple declines 3% on global tensions
Most cryptocurrencies fell on Wednesday amid mounting global tensions on tariffs and latest US economic data.
ADP data showed the US private sector added 27 thousand new jobs in May, the lowest since March 2023, and sharply below the 110 thousand expected by analysts.
US President Trump commented on the data by calling on Fes Chair Jerome Powell once more to cut interest rates, noting that Europe cut interest rates nine times so far.
It comes ahead of the crucial payrolls report on Friday, expected to show the addition of 125 thousand new jobs in May.
Other data from the ISM shows the services PMI down to 49.9 in May from 51.6 in April, while analysts expected 52.
The Trump administration specified Wednesday as the deadline for best offers by other countries on the trade deals, and it’s the same day that the US implemented 50% tariffs on steel and aluminum.
The White House also expects Trump to conduct a phone call with his Chinese counterpart this week after both sides traded accusations of violating the Geneva trade agreement.
Ripple
On trading, Ripple fell 2.9% as of 21:00 GMT on Coinmarketcap to $2.20.
Gold climbs above $3400 as the dollar falls
Gold prices rose on Wednesday as the dollar fell against most major rivals following US labor data and trade developments.
ADP data showed the US private sector added 27 thousand new jobs in May, the lowest since March 2023, and sharply below the 110 thousand expected by analysts.
US President Trump commented on the data by calling on Fes Chair Jerome Powell once more to cut interest rates, noting that Europe cut interest rates nine times so far.
It comes ahead of the crucial payrolls report on Friday, expected to show the addition of 125 thousand new jobs in May.
Other data from the ISM shows the services PMI down to 49.9 in May from 51.6 in April, while analysts expected 52.
The Trump administration specified Wednesday as the deadline for best offers by other countries on the trade deals, and it’s the same day that the US implemented 50% tariffs on steel and aluminum.
The White House also expects Trump to conduct a phone call with his Chinese counterpart this week after both sides traded accusations of violating the Geneva trade agreement.
Otherwise, the dollar index fell 0.5% as of 19:30 GMT to 98.7, with a session-high at 99.3, and a low at 98.6.
Gold spot prices rose 0.8% as of 19:30 GMT to $3404 an ounce.
Wall Street rises modestly after labor data
Most US stock indices gained ground today as investors assess latesr data and trade developments.
ADP data showed the US private sector added 27 thousand new jobs in May, the lowest since March 2023, and sharply below the 110 thousand expected by analysts.
US President Trump commented on the data by calling on Fes Chair Jerome Powell once more to cut interest rates, noting that Europe cut interest rates nine times so far.
It comes ahead of the crucial payrolls report on Friday, expected to show the addition of 125 thousand new jobs in May.
On trading, Dow Jones rose 0.1% as of 15:44 GMT to 42552 points, while S&P 500 rose 0.2% to 5980 points, as NASDAQ added 0.2%.