Source: BBG, MNI
BOJ (RTRS): Bank of Japan Governor Haruhiko Kuroda said dollar moves may not be affected much by U.S. interest rate hikes unless the pace is much faster than expected, according to a recording of an online interview by the Financial Times aired on Wednesday. The U.S. Federal Reserve has made "quite clear" how much it would like to raise interest rates, which has been priced in well by markets, Kuroda said in the interview recording. "Unless the Fed raises interest rates must faster than, or more than what their forward guidance shows, the dollar rate may not be so much affected by (U.S.-Japanese) interest rate differentials," he said.
BOJ (RTRS): The Bank of Japan will consider downgrading its assessment on factory output at this month's policy meeting, sources said, as supply disruptions caused by China's strict COVID-19 lockdowns take a heavy toll on the economy. The central bank may also warn of heightening risks to the global economy and exports, as China's slowdown and the fallout from Russia's invasion of Ukraine cloud the outlook, they said. But the central bank is likely to maintain its view that the world's third-largest economy is "picking up as a trend", as an expected rebound in consumption offset some of the weakness in output, said three sources familiar with its thinking. "While the economy may have experienced temporary weakness in April-June, the economy's recovery path remains intact," one of the sources said on condition of anonymity, a view echoed by two more sources.
GLOBAL ECONOMY/OECD: The OECD doubled inflation forecasts through next year and slashed its growth projection blaming the Ukraine invasion, and the Paris-based group's chief economist said cutting off Russian energy dollars is "essential" to ending the conflict. Consumer prices will rise 8.5% this year and 6% next year according to the OECD Economic Outlook. This year's global growth forecast was cut to 3% from about 4.5% and next year's expansion will slow further to 2.8%. GDP climbed 5.8% last year after contracting 3.4% in 2020 amid the Covid pandemic.
JAPAN: The Japanese sentiment index posted a third straight rise in May while the outlook index posted a fourth increase as the government raised its assessments from the previous month, according to the Economy Watchers data released by the Cabinet Office on Wednesday. The Economy Watchers sentiment index for the current economic climate rose a seasonally adjusted 3.6 points to 54.0 in May from 50.4 in April.
RUSSIA-UKRAINE (RTRS): Russian Foreign Minister Sergei Lavrov on Wednesday the onus was on Ukraine to solve the problem of resuming grain shipments by de-mining its ports. Lavrov said no action was required on the Russian side because it had already made the necessary commitments. "We state daily that we're ready to guarantee the safety of vessels leaving Ukrainian ports and heading for the (Bosphorus) gulf, we're ready to do that in cooperation with our Turkish colleagues," he said after talks with his Turkish counterpart. "To solve the problem, the only thing needed is for the Ukrainians to let vessels out of their ports, either by demining them or by marking out safe corridors, nothing more is required."
FRANCE POLITICS: Opinion polling from France ahead of the first round of the legislative election taking place on Sunday 12 June shows President Emmanuel Macron's centrist 'Ensemble' bloc on the cusp of retaining its majority in the National Assembly. Over the course of the past six weeks, the mean average seat projection for Macron's Ensemble alliance has declined steadily, to the point where the seat projection range in the latest Ifop-Fiducial poll from 6 June has the alliance between 250 and 290 seats, with the highest end of this range only a seat above the 289 required for an overall majority.
Euro area growth was stronger than originally forecast in Q1 2022, with GDP rising 0.6% Q/Q in the three months to end March. Year-on-year, GDP rose 5.4% in the first quarter, outpacing both Eurostat's preliminary estimate and the forecasts of financial market analysts, which both saw y/y growth at 5.1%.
The upwardly-revised GDP in Q1 left volumes in the euro area 0.8% above the level recorded in the fourth quarter of 2019, before the COVID-19 outbreak.
The data will make interesting reading for the European Central Bank ahead of their June policy meeting, confirming that growth remained strong in the first three months of the year. However, the data only covered the first month of the war in Ukraine and will likely not be as strong in Q2.
Source: Eurostat
Date | GMT/Local | Impact | Flag | Country | Event |
08/06/2022 | 1100/0700 | ** | ![]() | US | MBA Weekly Applications Index |
08/06/2022 | 1400/1000 | ** | ![]() | US | Wholesale Trade |
08/06/2022 | 1430/1030 | ** | ![]() | US | DOE weekly crude oil stocks |
08/06/2022 | 1530/1130 | * | ![]() | US | US Treasury Auction Result for Cash Management Bill |
08/06/2022 | 1700/1300 | ** | ![]() | US | US Note 10 Year Treasury Auction Result |
09/06/2022 | 2301/0001 | * | ![]() | UK | RICS House Prices |
09/06/2022 | 0600/0800 | ** | ![]() | SE | Private Sector Production |
09/06/2022 | 1145/1345 | *** | ![]() | EU | ECB Deposit Rate |
09/06/2022 | 1145/1345 | *** | ![]() | EU | ECB Main Refi Rate |
09/06/2022 | 1145/1345 | *** | ![]() | EU | ECB Marginal Lending Rate |
09/06/2022 | - | *** | ![]() | CN | Trade |
09/06/2022 | 1230/0830 | ** | ![]() | US | WASDE Weekly Import/Export |
09/06/2022 | 1230/0830 | ** | ![]() | US | Jobless Claims |
09/06/2022 | 1230/1430 | ![]() | EU | ECB Press Conference Following Governing Council Meeting | |
09/06/2022 | 1400/1000 | ![]() | CA | BOC Financial System Review | |
09/06/2022 | 1430/1030 | ** | ![]() | US | Natural Gas Stocks |
09/06/2022 | 1500/1100 | ![]() | CA | BOC Governor press conference | |
09/06/2022 | 1530/1130 | * | ![]() | US | US Bill 08 Week Treasury Auction Result |
09/06/2022 | 1530/1130 | ** | ![]() | US | US Bill 04 Week Treasury Auction Result |
09/06/2022 | 1700/1300 | *** | ![]() | US | US Treasury Auction Result for 30 Year Bond |