Forex News Roundup for 6th June, 2023

  • At the beginning of the week, Asian equity markets are witnessing a rise, spearheaded by Japan. The country’s remarkable post-Covid recovery has ignited a strong surge in stock prices, leading to an enduring bull market.
  • Japanese equity indices, including the Nikkei 225, are scaling heights not witnessed in many years, making this an intriguing prospect for trend traders.
  • The US Dollar is once again on the rise, contrary to its longstanding bearish trajectory. Today’s market activity has predominantly seen the Swiss Franc weakening and the Australian Dollar gaining strength. Nonetheless, trend traders are anticipated to explore long opportunities in the USD/JPY currency pair, which recently reached a fresh six-month peak in terms of price.
  • Following the recent OPEC+ meeting, Saudi Arabia made a significant announcement. They will implement a voluntary reduction in production by 1 million barrels per day, in addition to extending the expiration of other voluntary cuts until the end of 2024.
  • In May, the Melbourne Institute inflation gauge experienced a significant surge, leaping from 0.2% to 0.9%.
  • Australia’s company operating profits in the first quarter of 2023 witnessed a 0.5% increase, which fell short of the anticipated 1.5% rise and the substantial 12.7% growth observed in the previous quarter.
  • The au Jibun Bank Japan Services PMI underwent a revision, revealing a reading of 55.9 compared to the initial reported figure of 56.3. This revision follows April’s reading of 55.4.
  • Germany’s trade surplus expanded from 14.9 billion EUR to 18.4 billion EUR in April, driven by a 1.2% monthly increase in exports, while imports experienced a decline of 1.7% month-on-month.
  • China’s Caixin services PMI exhibited improvement in May, rising from 56.4 to 57.1, surpassing expectations of 55.2. This positive development suggests a sustained recovery post-lockdown.
  • Two noteworthy data releases are scheduled for later today. The Swiss Consumer Price Index (CPI) is forecasted to reveal a 0.3% increase on a month-on-month basis. Furthermore, market participants will closely monitor the release of the US ISM Services Purchasing Managers’ Index (PMI).