The week began with a quiet atmosphere, as Asian stock markets, except for Japan, were mostly down. Futures indicated that Europe and the United States were also expected to open lower. On the foreign exchange market, the yen had strengthened slightly against other major currencies. Masato Region, Deputy Minister of Economy in Japan responsible for currency affairs, mentioned that Japanese authorities were prepared to intervene in the currency market if necessary.
The focus this week is on inflation figures from Japan, Australia, and the United States, including the Fed’s closely monitored PCE deflator. Despite an interest rate hike in March, the yen’s continued weakness is a major theme with historically low levels against the dollar. In politics, the US presidential and British prime ministerial races are underway.
In Europe, the EU is set to negotiate with China on import duties for electric cars. Tariffs of up to 48% are planned on Chinese electric cars. China has threatened to retaliate against such tariffs. Bitcoin fell to its lowest level in more than a month, dropping below $63,000 marking six consecutive days of negative net cash flows from US Bitcoin ETFs.
