June 28: Asian session
USD/JPY extended the upside on Friday, testing the 99.00 mark following the yesterday’s data releases. Japan’s industrial production for May rose by 2.0% m/m, 10 times better than was expected (forecast: +0.2%, prior: +0.9%). Retail sale rose in May by 0.8% y/y (expected: 0.0%, prior: -0.2%). Inflation figures are still not inspiring despite a slight improvement: National CPI for May contracted by 0.3% y/y (expected: -0.4%, prior: -0.7%), while Tokyo CPI for June came at 0.0% y/y (expected +0.1%, prior -0.2%). Nikkei index moved above the 13500 points mark for first time in last 2 weeks, gaining more than +2% today.
AUD/USD recovered to $0.9270 following an earlier dip to $0.9215. NZD/USD rebounded to $0.7815 after a dip to $0.7755. Risky currencies are supported by the strong rebound in the China’s Shanghai index. USD/CAD is trading on the downside, just above 1.0450.
EUR/USD is trading on the upside for the second day in a row. Euro has managed to recover to the $1.3070/80 area from a four-week trough around $1.2985 hit on Wednesday. German retail sales increased in May by 0.8% vs. 0.2% growth expected. GBP/USD rose to levels around $1.5270 after testing $1.5200 on Thursday. USD/CHF is trading lower from the yesterday’s peak at 0.9490. Switzerland will release KOF economic barometer at 7:00 GMT.