Asia Economic Calendar June 29: Japan Data Due, Yen Weak
Japan releases economic data on June 29, but the yen remains under pressure amid hawkish ECB comments and RBA Governor Bullock's remarks over the weekend.
Asian markets are set to digest a fresh batch of economic data from Japan on Monday, June 29, though the yen is expected to remain on the back foot after hawkish central bank commentary over the weekend.
Japan will release its latest economic indicators today, but traders are not anticipating a significant move in the yen. The currency has been persistently weak, and the data is unlikely to alter that trajectory. Over the weekend, European Central Bank board member Isabel Schnabel delivered a hawkish speech, calling for further rate hikes despite recent relief from geopolitical tensions in the Hormuz Strait. Meanwhile, Reserve Bank of Australia Governor Michele Bullock also spoke, with the full text of her remarks due on Tuesday. These comments reinforce the divergence between the Bank of Japan's ultra-loose policy and the tightening stance of other major central banks, keeping the yen under pressure.
For forex traders, the yen's weakness is a key theme. The interest rate differential between Japan and other economies continues to widen, making the yen a funding currency for carry trades. Any data from Japan that fails to show strong inflation or growth will likely reinforce the BoJ's cautious approach, further weighing on the yen. Traders can monitor real-time yen crosses on NowPrice for the latest levels.
Looking ahead, the focus will shift to other data releases and central bank speeches later in the week. Schnabel's hawkish tone suggests the ECB may continue raising rates, which could support the euro against the yen. Bullock's full remarks may provide clues on the RBA's policy path. Additionally, any unexpected strength in Japanese data could prompt a short-term yen bounce, but the broader trend remains bearish for the currency.