Early on Monday, Bank of Japan announced the Services Producer Price Index (SPPI) of April as 0.9%, which turned out to be much higher than the forecast (0.5%) and surprised the market. As a result, the JPY value rose positively against other major currencies such as USD, EUR, and AUD on the very first two days of the week.
As Tuesday came, the Conference Board Inc. from the U.S released the CB Consumer Confidence, which was a little bit lower than the prediction after a downward revision (128 compared to 128.2). In New Zealand, the RBNZ Financial Stability Report was published, noting that the country’s financial system is stable and efficient, while the risks are familiar. However, the level of household debt and dairy debt is still relatively high. In spite of the currently positive scenario, this could leave a potential threat of liquidity on the market.
On Wednesday, BOJ Governor Kuroda had his speech at the Monetary and Economic Studies annual conference in Tokyo, providing his view of changing central banks as a result of wide-ranging structural changes in the global economic and financial environment. His speech was followed by a recovery in the USD/JPY as the exchange rate closed the week at 109.487, marking an increase of 0.62% from last week. In the U.S, the ADP Non-Farm Employment Change and Prelim GDP of the U.S was published with the ADP Non-Farm Employment Change at 178K and the Prelim GDP relatively stable at 2.2%. In the North, the Bank of Canada announced the Overnight Rate at 1.25%, while BOC Rate Statement released was considered paving the way for more rate hikes this year. The USD/CAD responded positively with the CAD rising significantly on the same day before the exchange rate ended the week at 1.29450, posting nearly no change from last week.
Thursday started first at Oceania, with the ANZ Business Confidence published at -27.2, which continued the downtrend since February. In Australia, the Australian Bureau of Statistics released the quarterly Private Capital Expenditure at 0.4%, which was only half of the previous forecast. All the negative news immediately affected the AUD/USD and NZD/USD, with the AUD/USD rising to 0.75614 (increased 0.2% in compared to last week’s rate), while the NZD/USD closed the week at 0,69800 (increased 1% in compared to last week’s rate). In the same time, the Statistics Canada published the monthly GDP at 0.3%, which was higher than the prediction.
The highlights of Friday came from the U.S with many indices of different sectors released positively at much higher level than predictions: Average Hourly Earnings (0.3% in compared to 0.2%), Non-Farm Employment Change (223K in compared to 189K), Unemployment Rate (3.8% in compared to 3.9%), ISM Manufacturing PMI (58.7 in compared to 58.3). The relatively spectacular view on the U.S’s economy and financial market on Friday is hopefully to support the value of the USD in next week. On the other shore of the Atlantic, the Manufacturing PMI of the U.K was announced at 54.4, posting a positive rise from the forecast that led to the recovery of the Pound – Greenback at later of the week. The GBP/USD exchange rate had a considerable fall on Tuesday before heading up to 1.33422.
In the cryptocurrency sector, the world’s most famous digital currency stopped posted a correction this week. At the time of writing, BTC/USD is trading around $7,501.6.