| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 03:00 | Japan | BoJ Interest Rate Decision | | 0.1% | 0.1% | 0.1% |
| 06:45 | France | CPI, m/m | May | 0.5% | 0% | 0.0% |
| 06:45 | France | CPI, y/y | May | 2.2% | 2.2% | 2.3% |
During today's Asian trading, the US dollar rose against major currencies, continuing yesterday's increase and reaching its highest level since May 9 amid increased demand for safe haven assets.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.26% to 105.47. Yesterday, the index added 0.58%, continuing to receive support from the results of the June Fed meeting, which preferred a more hawkish tone than expected and predicted only one rate cut in 2024. However, the latest weaker-than-expected US data has increased the likelihood of an earlier rate cut by the Fed. According to the CME FedWatch Tool, markets see a 12.4% probability of a 25 basis point rate cut at the Fed meeting in July, a 65.0% probability of a rate cut in September, and a 78.7% probability of monetary policy easing in November. Today, investors will focus on import price data for May, as well as the Reuters/Michigan consumer sentiment index for June. Economists predict that the import price index has not changed compared to April, and the consumer sentiment index rose to 72.0 from 69.1 in May.
The yen fell 0.65% against the US dollar, breaking above the 158 level for the first time since May 1 after the Bank of Japan left the interest rate at 0.1% and said it would continue to buy government bonds at the current pace and would only outline the details of its reduction plan for the next one to two years at its July meeting. Market participants expected the Central Bank to announce a reduction in large-scale bond purchases today.
The euro fell 0.1% against the US dollar, reaching its lowest level since May 2, as the recent decision to hold early elections in France increased concerns about political uncertainty in the country and in the eurozone as a whole. That came after France's far right pummelled Macron's party in the EU parliament election.