Latest Market News: 19th June 2023

After a week where the market celebrated both lower headline inflation and the long awaited Fed pause, stocks began to fall back just a little on Friday. Nonetheless, it was a good week for equities generally. The only problems being US core inflation is still extremely high at 5.3%, and the Fed maintained a rather strident tightening rhetoric.

BoJ stands pat as policy divergence widens. During the Asian trading session on last Friday, the yen has continued to trade at weaker levels, following the recent policy update by the Bank of Japan (BoJ). This month, the yen has experienced a significant decline in value due to expectations of a growing divergence in monetary policies between the BoJ and other major central banks.

The Dollar surged against the Japanese Yen to fresh 2023 highs just under 142.00 (141.96) after the Bank of Japan offered no sign to change policy, sticking with its ultra-low rates. The Bank of Japan lefts it’s Policy Rate unchanged at -0.10%. In late New York on Friday, USD/JPY was at 141.75, up from its 140.28 open. BOJ Governor Ueda said he expected inflation to moderate.

• Major currency spreads were excellent in the EU and US sessions, and good to excellent in the Asian session, except for GBPUSD.
• Gold spread stayed consistently at or above 'Good' level across all trading sessions during last week's market events.
• DJ30 spread remains consistently excellent across all trading sessions, averaging 150-200 points in the Asian session and improving to 100-150 cents in the EU and US sessions.

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