June 21, 2024
United States:
US Adds Japan to Currency Watchlist as Trade Partners Struggle With Stronger Dollar
The US Treasury Department added Japan to its “monitoring list” for foreign exchange practices, but stopped short of labeling it or any other trade partner as a currency manipulator.
While pointing out that Japan intervened to support the yen earlier this year, the Treasury took aim instead at Tokyo’s large bilateral trade and current account surpluses.
Europe:
Euro-Zone Activity Slows on French Vote Risk, Factory Slump
The rebound in euro-area private-sector business activity unexpectedly lost momentum as France’s snap election weighed on firms and manufacturing in the region recorded its worst month of the year.
S&P Global’s composite Purchasing Managers’ Index fell to 50.8 in June. While that’s a fourth straight reading above the 50 threshold that signals growth, analysts polled by Bloomberg had predicted an advance to 52.5.
Asia:
Japan’s Inflation Picks Up, Backing Case for BOJ Rate Hike
Japan’s inflation accelerated on the back of rising energy costs, a result that backs the case for the central bank to consider raising interest rates in coming months.
Consumer prices excluding fresh food rose 2.5% in May from a year ago, quickening from 2.2% in April, the ministry of internal affairs said Friday. The reading came in a tad below economists’ consensus while staying at or above the Bank of Japan’s 2% target for a 26th month. Inflation was driven by a 14.7% jump in electricity prices.
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