16 June Economic News
The Wall Street is expected to continue its fifth consecutive week of gains, with positive economic data indicating resilient consumer demand, cooling US labor market, and easing pricing pressures. The DJIA is testing its crucial resistance level at 34,400, with an overall upward trend. However, Asian stocks are mixed due to Singapore’s non-oil domestic exports contracting for the eighth straight month. The Bank of Japan meeting will be in focus, with no change in policy rate expected despite higher inflation and an uneven recovery in Japan. The EUR/USD has reclaimed its 100-day MA due to a hawkish guidance from the ECB and policy divergence, with a potential move towards its May 2023 high at the 1.109 level.
The Bank of Japan (BOJ) has maintained its ultra-loose policy settings as anticipated, resulting in a slip in the Japanese yen. This development has prompted a slight increase in the USD/JPY exchange rate. In light of these events, it is pertinent to examine the prospects for USD/JPY and identify key indicators to monitor.
