Greenback Getting Better, Single Currency Awaits ECB Decision, Yen is Sustained
The greenback is getting better. The single currency is anticipating ECB’s meeting, where members should decide whether to tighten the policy or not. Japanese Yen is sustained. Bank of Japan, as it was supposed to, didn’t change the policy, but lifted growth prognosis and reduced inflation projection. Core inflation is now expected to indicate 1.1% this year, 1.5% in 2018 and 1.8% in 2019. GDP growth is projected to mark 1.8% this year, 1.4% in 2018 and 0.7% in 2019. Near term policy rate remained at -0.1%, annual level of asset purchase was maintained at 80 trillion yen and 10 year government yield was held near 0%. Australian Dollar was boosted by employment figures, but the recovery was brief.
Australian headline job data indicated growth of 14 thousand in prior month. Unemployment rate stayed at 5.6%. Full-time jobs increased 62 thousand and part-time jobs dropped 48 thousand. NAB business confidence remained at 7 in the second quarter. Japan trade surplus lowered to 0.08 trillion yen in the previous month. All industry activity index fell -0.9% mom in May. Today, Britain will publish retail sales. Germany will announce PPI. Swiss will show trade balance. The United States will issue jobless claims, Philly Fed survey and leading indicators.