Spreadex Market Update
Strong US Data and Bank Stress Test Results Drive Dollar and Equities Higher
Yen Falls into "Rate Check" Territory
The yen weakened, reaching a 7-month low against the dollar and raising speculation about potential actions by the Bank of Japan. Last year, when the yen hit a similar level, the Bank of Japan initiated a "rate check," which indicates a potential intervention by the Ministry of Finance to support the currency. If the USD/JPY pair remains strong, it may test the 144.00 level, with resistance near 145.52.
German CPIs Above Estimates Ahead of EA Figures
Germany's preliminary annual CPI for June rose to 6.4%, surpassing expectations and indicating higher inflationary pressures. Spain also exceeded expectations with an annual CPI of 1.9%, making it the first EU state to fall within the European Central Bank's 2% target. However, the core rate came in at 5.9%, slightly lower than expected but down from the previous 6.9%. The euro slid 0.47% against the dollar, reaching $1.0862 and exposing support at $1.0824. Resistance is expected near $1.0913, just below $1.0964.
Kiwi Consumer Confidence Well Above Expectations
The ANZ June Consumer Confidence survey in New Zealand showed a significant increase, with a reading of 85.5 compared to 79.2 in May, marking the highest level this year. Analysts attribute this rise to relief from inflation concerns, as expectations of price growth have fallen and there is a growing sentiment that house prices are stabilizing. The New Zealand dollar is expected to target the 61-cent barrier, with support above $0.6037 at $0.6070.
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Yen Falls into "Rate Check" Territory
The yen weakened, reaching a 7-month low against the dollar and raising speculation about potential actions by the Bank of Japan. Last year, when the yen hit a similar level, the Bank of Japan initiated a "rate check," which indicates a potential intervention by the Ministry of Finance to support the currency. If the USD/JPY pair remains strong, it may test the 144.00 level, with resistance near 145.52.
German CPIs Above Estimates Ahead of EA Figures
Germany's preliminary annual CPI for June rose to 6.4%, surpassing expectations and indicating higher inflationary pressures. Spain also exceeded expectations with an annual CPI of 1.9%, making it the first EU state to fall within the European Central Bank's 2% target. However, the core rate came in at 5.9%, slightly lower than expected but down from the previous 6.9%. The euro slid 0.47% against the dollar, reaching $1.0862 and exposing support at $1.0824. Resistance is expected near $1.0913, just below $1.0964.
Kiwi Consumer Confidence Well Above Expectations
The ANZ June Consumer Confidence survey in New Zealand showed a significant increase, with a reading of 85.5 compared to 79.2 in May, marking the highest level this year. Analysts attribute this rise to relief from inflation concerns, as expectations of price growth have fallen and there is a growing sentiment that house prices are stabilizing. The New Zealand dollar is expected to target the 61-cent barrier, with support above $0.6037 at $0.6070.
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