- Federal Reserve speakers Friday include Barkin and Daly
- RBNZ 2 year inflation expectations 2.29% (prior was 2.06%)
- Banxico Governor Victoria Rodriguez says inflation and economy slowing
- South Korea’s finance ministry says the economy faces increasing” downward pressure
- The US says Vietnam’s trade deficit is unsustainable and a major concern amid tariff talks
- European Central Bank Chief Economist Lane speaking Friday
- Bank of Japan Policy Board member Nakamura Toyoaki is speaking soon
- ICYMI: Wisconsin sells entire bitcoin ETF position after early bet on BlackRock fund
- Japan economy minister Akazawa: Govt will continue to demand review of U.S. tariffs
- PBOC sets USD/ CNY reference rate for today at 7.1938 (vs. estimate at 7.2085)
- Goldman Sachs raises its 12-month target for MSCI Asia-Pacific ex-Japan to 660 from 620
- JP Morgan analysts expect Bitcoin to outperform gold for the rest of the year
- Singapore’s April exports surge 12.4%, beating expectations but outlook remains cautious
- Japan finmin Kato: Will seek to have a meeting with Bessent, discuss FX and other matters
- Canadian Prime Minister & Mexican President to strengthen economies against future shocks
- 75bp of Reserve Bank of Australia rate cuts to come (Reuters poll)
- USD/JPY little changed after the economic contraction data from Japan, JPY up a little
- Japan Q1 GDp -0.2% q/q (expected -0.1%)
- Japan finance minister Kato says will discuss FX with Bessent
- FT: Trump administration split on timing of adding Chinese chipmakers to export blacklist
- New Zealand April Manufacturing PMI shows an uptick in expansion to 53.9 vs. prior 53.2
- HSBC modelling sees USD/JPY trading a 141 – 149 range (there’s a but)
- Australia financial media reports that “Australia won’t join Trump trade war on China”
- U.S. Deputy Treasury Secretary says not concerned about persistent increases in prices
- Japan, US to resume tariff talks after G7 summit as Akazawa plans Washington visit
- South Korea April export prices have shown their slowest rise y/y since December 2023
- Forexlive Americas FX news wrap: Dip in PPI pulls down USD/JPY
- JP Morgan CEO Dimon says US recession risks remain high amid deficits and inflation
- Major indices close mixed. NASDAQ lower as Meta-reverses course on AI problems
- Trade ideas thread – Friday, 16 May, insightful charts, technical analysis, ideas
From
Japan today we had preliminary data for Q1 GDP. This was very poor
data, showing the tenuous nature of Japan’s economic recovery. The
annualised q/q came in at -0.7%, its first fall for a year. Exports
fell q/q, even as almost every other country on the planet were
ramping these higher ahead of US tariffs.
The
yen gained after the data, with a strong deflator result, +3.3% y/y.
The Deflator in this data is an indicator of inflation. USD/JPY dealt
down to circa 145.00. It bounced back from there to highs above
145.40 and is around 145.30 as I post.
News
flow was light and of little impact.
The
Reserve Bank of New Zealand published the results of its Q2 inflation
expectations survey. Both 1- and 2-year inflation expectations rose,
helping an already climbing NZD/USD to climb higher. NZD/USD rose
from lows around 0.5865 to highs above 0.5900 as I post.
The
USD was a little weaker also against EUR, AUD, GBP, CAD.
Gold
dropped back to under USD3210.
This article was written by Eamonn Sheridan at www.forexlive.com.
