Japanese Yen is Pressured, Great 20 Meeting Unremarkable
Japanese Yen keeps lowering. The meeting of a Great 20 didn’t catch much of attention. The participants claimed they will oppose protectionism and settle trade relationships. They also mentioned the Paris Pact, from which the US has recently refused. Meanwhile, Bank of Japan revised up its rating of regional Japan. The gradual expansion was noted in 6 regional economies. Francois Villeroy de Galhau (ECB Governing Council member) talked about policy tightening. He noted it would push inflation towards its objective and boost the economic recommencement. Benoit Coeure (Executive Board member) added that ECB made a right decision when it decided to reduce its monthly bond purchase from 80 billion to 60 billion euros. Analysts forecasts that the Bank will start its policy tightening in September and from that time the bond buying program will reach 0 somewhere in 2018.
China PPI remained at 1.5% yoy in prior month. German trade surplus mildly expanded to 20.3 billion euros in May. Japan’s machines orders fell -3.6% mom. Current account surplus reduced to 1.40 trillion yen in May. Eco Watchers sentiment lifted to 50 in previous month. Today, the Eurozone will publish Sentix investor confidence. The United States will announce labor market conditions index. This week, Bank of Canada will declare its rate. Britain will show employment numbers. The US will publish PPIU and Cosumer Price Index and Janet Yellen will deliver her speech.