Foreign exchange market. Asian session: the Japanese yen declined against the U.S. dollar after the Bank of Japan’s interest decision

Economic calendar (GMT0):

00:30    New Zealand   REINZ Housing Price Index, m/m       May        +0.1%                +0.1%

03:00    Japan             BoJ Interest Rate Decision                               0.10%   0.10%    +0.1%

03:00    Japan             Bank of Japan Monetary Base Target                270        270         270

03:00    Japan             BoJ Monetary Policy Statement                                                            

04:30    Japan             Industrial Production (YoY) (Finally)   April         +4.1%  +4.1%   +3.8%

04:30    Japan             Industrial Production (MoM) (Finally)  April         -2.5%   -2.5%    -2.8%

05:30    China              Retail Sales y/y                                  May         +11.9% +12.3% +12.5%

05:30    China              Industrial Production y/y                    May          +8.7%  +8.8%   +8.8%

05:30    France            Non-Farm Payrolls (Finally)               Quarter I   -0.1%   -0.1%    -0.1%

06:00    Germany         CPI, m/m (Finally)                              May          -0.1%   -0.1%    -0.1%

06:00    Germany         CPI, y/y (Finally)                                May         +0.9%  +0.9%   +0.9%

07:30    Japan             BOJ Press Conference                                               

09:00    Eurozone        Employment Change                          Quarter I    +0.1%  +0.1%   +0.1%

09:00    Eurozone        Trade Balance s.a.                             April           15.2      15.9       15.8

The U.S. dollar traded mixed against the most major currencies after the Thursday’s weaker-than-expected U.S. economic data. The U.S. retail sales increased 0.3% in May, missing expectations for a 0.5% gain, after a 0.5% rise in April. April’s figure was revised up to a 0.5% gain from an increase of 0.1%.

The U.S. core retail sales excluding automobile sales were up 0.1% in May, missing expectations for a 0.4% increase, after a 0.4% rise in April. April’s figure was revised up to 0.4% from 0%.

The U.S. Labor Department released the number of initial jobless claims on Thursday. The initial jobless claims in the week ending June 7 rose by 4,000 to 317,000. Analysts had forecasted a decline by 6,000 to 306,000.

The New Zealand dollar traded lower against the U.S dollar due to the weaker economic data from New Zealand. The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) was 52.7 in May, after 54.4 in April. Figures above 50 indicates expansion and below 50 contraction.

Business New Zealand executive director for manufacturing Catherine Beard said the lower level of expansion in May was driven by the decreasing number of new orders.

Food prices index in New Zealand increased 0.6% in May. REINZ housing price index climbed 0.1% in May.

Market participants remained unimpressed by the better-than-expected economic data from China. Retail sales in China increased 12.5% in May, exceeding expectations for a 12.3% gain, after a 11.9% rise in April.

The Chinese industrial production rose 8.8% in May, meeting expectations, after a 8.7% increase in April.

The Australian dollar traded mixed against the U.S. dollar in the absence of any economic reports in Australia.

The Japanese yen declined against the U.S. dollar after the Bank of Japan’s interest decision. The Bank of Japan kept its interest rate unchanged at 0.1%. The BoJ said it will continue to expand the monetary base at a pace of ¥60 trillion to ¥70 trillion per year. This decision was expected by market participants.

The industrial production (final) in Japan decreased 2.8% in April, missing expectations for a 2.5% decline, after a 2.5% decline in March. On a yearly, the Japanese industrial production increased 3.8% in April, missing expectations for a 4.1% gain, after a 4.1% rise in March.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair increased to $1.6975

USD/JPY: the currency pair was up to Y101.95

The most important news that are expected (GMT0):

12:30    Canada  Manufacturing Shipments (MoM)                                          April     +0.4%  +0.9%  

12:30    U.S.       PPI, m/m                                                                                May     +0.6%  +0.1%  

12:30    U.S.       PPI, y/y                                                                                  May     +2.1%                 

12:30    U.S.       PPI excluding food and energy, m/m                                      May     +0.5%  +0.2%  

12:30    U.S.       PPI excluding food and energy, Y/Y                                       May     +1.9%                 

13:55    U.S.       Reuters/Michigan Consumer Sentiment Index (Preliminary)   June      81.9      83.2