Yen Weakens Amid Rising Crude Oil Prices — Market Talk

The US dollar rose against its major trading partners early Friday before the release of the preliminary University of Michigan consumer sentiment reading for June at 10:00 am ET.

The dollar received haven support after Israel struck nuclear sites in Iran Thursday.

The St. Louis Federal Reserve bank is expected to update its gross domestic product Nowcast estimate around midday.

Federal Reserve officials are in their 'quiet period' ahead of the next Federal Open Market Committee meeting June 17-18.

A quick summary of foreign exchange activity heading into Friday:

fell to 1.1501 from 1.1577 at the Thursday US close and 1.1594 at the same time Thursday morning. Eurozone industrial production fell in April, slowing the year-over-year growth pace, while the Eurozone trade surplus narrowed in the same month, according to data released earlier Friday. European Central Bank policy board member Frank Elderson is due to speak at 11:00 am ET. The next European Central Bank meeting is scheduled for July 24.

fell to 1.3529 from 1.3604 at the Thursday US close and 1.3595 at the same time Thursday morning. There are no UK data on Friday's schedule. The next Bank of England meeting is scheduled for June 19.

rose to 144.3907 from 143.5513 at the Thursday US close and 143.4687 at the same time Thursday morning. Japanese consumer sentiment rose in June while Japanese industrial production and services purchases both declined in April, according to data released overnight. The next Bank of Japan meeting is scheduled for June 16-17.

rose to 1.3648 from 1.3604 at the Thursday US close and 1.3630 at the same time Thursday morning. Canadian manufacturing, wholesale and motor vehicle sales, all for April, are set to be released at 8:30 am ET along with Q1 capacity utilization. The next Bank of Canada meeting is scheduled for July 30.

The US dollar fell against its major trading partners early Thursday before the release of weekly jobless claims and producer price data for May, both at 8:30 am ET.

Weekly natural gas stocks inventory data are due to be released at 10:30 am ET.

Soft US consumer price index data for April released Wednesday suggested less tariff impact than expected, trimming the dollar, but there are concerns there will be a rebound in the May data released next month.

Federal Reserve officials are in their 'quiet period' ahead of the next Federal Open Market Committee meeting June 17-18.

A quick summary of foreign exchange activity heading into Thursday:

rose to 1.1603 from 1.1482 at the Wednesday US close and 1.1438 at the same time Wednesday morning. There are no Eurozone data on Thursday's schedule, but European Central Bank Vice President Luis de Guindos is due to speak at 8:00 am ET, followed by ECB policy board members Isabel Schnabel at 8:20 am ET and Frank Elderson at 10:15 am ET. The next European Central Bank meeting is scheduled for July 24.

rose to 1.3590 from 1.3537 at the Wednesday US close and 1.3495 at the same time Wednesday morning. UK gross domestic product declined in April, slowing the year-over-year growth rate, while UK consumer sentiment improved in June, according to data released earlier Thursday. The next Bank of England meeting is scheduled for June 19.

fell to 143.5408 from 144.6448 at the Wednesday US close and 145.1616 at the same time Wednesday morning. Japanese large manufacturing conditions deteriorated in Q2, according to data released overnight. The next Bank of Japan meeting is scheduled for June 16-17.

fell to 1.3629 from 1.3667 at the Wednesday US close and 1.3687 at the same time Wednesday morning. There are no Canadian data on Thursday's schedule. The next Bank of Canada meeting is scheduled for July 30.

The yen strengthens against other G-10 and Asian currencies in the early morning session amid risk-off sentiment. There's been an escalation of tensions in the Middle East, NAB's Taylor Nugent says in commentary. "The U.S. government ordered a partial evacuation of its embassy in Iraq amid rising security risks," the senior economist says. Also, "Iran threatened to target U.S. military bases in the region if conflict breaks out," Nugent adds. According to the WSJ, Iran's Defense Minister Amir Aziz Nasirzadeh on Wednesday warned, "if a conflict is imposed on us...all U.S. bases are within our reach and we will boldly target them in host countries." USD/JPY declines 0.3% to 144.12; AUD/JPY drops 0.3% to 93.75.(ronnie.harui@wsj.com)

The US dollar rose against its major trading partners early Wednesday, except for a decline versus the euro, ahead of the release of May consumer price index data at 8:30 am ET.

Weekly petroleum stocks inventory data are due to be released at 10:30 am ET and the US Treasury's monthly budget statement for May is due to be published at 2:00 pm ET.

Earlier Wednesday, the Mortgage Bankers Association said mortgage applications rebounded in the week ended June 6 after a decline in the previous week, reaching their highest level in over a month. Mortgage rates ticked up only slightly in the week.

Federal Reserve officials are in their 'quiet period' ahead of the next Federal Open Market Committee meeting June 17-18.

A quick summary of foreign exchange activity heading into Wednesday:

rose to 1.1429 from 1.1427 at the Tuesday US close and a level of 1.1428 at the same time Tuesday morning. There are no Eurozone data on Wednesday's schedule, but European Central Bank policy board member Phillip Lane said earlier Wednesday the ECB's recent rate cut was to ensure inflation did not settle below its target, according to Reuters. The next European Central Bank meeting is scheduled for July 24.

fell to 1.3492 from 1.3502 at the Tuesday US close and 1.3501 at same time Tuesday morning. There are no UK data releases on Wednesday's schedule. The next Bank of England meeting is scheduled for June 19.

rose to 145.1869 from 144.9012 at the Tuesday US close and 144.5071 at the same time Tuesday morning. Japanese producer prices fell in May, slowing the year-over-year rate, according to data released overnight. The next Bank of Japan meeting is scheduled for June 16-17.

rose to 1.3687 from 1.3673 at the Tuesday US close but was below a level of 1.3694 at the same time Tuesday morning. Canadian building permits data for April are due to be released at 8:30 am ET, followed by Canadian consumer sentiment data for June at 11:00 am ET. The next Bank of Canada meeting is scheduled for July 30.

The US dollar rose against its major trading partners early Tuesday, ahead of a light data release day.

Earlier Tuesday, the National Federation for Independent Business reported that small business sentiment improved modestly but that uncertainty remains. Taxes were cited as the largest problem by 18% of respondents, above labor quality and inflation for the first time since December 2020.

Weekly Redbook same-store sales are due to be released at 8:55 am ET.

Federal Reserve officials are in their 'quiet period' ahead of the next Federal Open Market Committee meeting on June 17-18.

A quick summary of foreign exchange activity heading into Tuesday:

fell to 1.1424 from 1.1425 at the Monday US close but was above a level of 1.1420 at the same time Monday morning. Eurozone investor confidence rose in June to indicate slightly more optimism than pessimism, according to data released earlier Tuesday. European Central Bank President Christine Lagarde is due to speak at 11:15 pm ET. The next European Central Bank meeting is scheduled for July 24.

fell to 1.3501 from 1.3559 at the Monday US close and 1.3560 at the same time Monday morning. UK employment and earnings growth slowed in April while the unemployment rate increased, according to data released overnight. The next Bank of England meeting is scheduled for June 19.

rose to 144.5864 from 144.5770 at the Monday US close and 144.1785 at the same time Monday morning. Japanese machine tool orders growth slowed in May while money stock growth accelerated according to data release overnight. The next Bank of Japan meeting is scheduled for June 16-17.

rose to 1.3698 from 1.3685 at the Monday US close and 1.3675 at the same time Monday morning. There are no Canadian data on Tuesday's schedule. The next Bank of Canada meeting is scheduled for July 30.

The yen weakens against other G-10 and Asian currencies in the morning session amid appetite for risky assets. This typically reduces the safe-haven allure of the Japanese currency. There's risk-on sentiment from the U.S.-China trade negotiations in London, CIMB's research analysts say. The U.S. could ease restrictions on select semiconductors and materials if China lifts rare-earth limits, they say. USD/JPY rises 0.4% to 145.14; AUD/JPY gains 0.3% to 94.52; NZD/JPY is 0.2% higher at 87.62. (ronnie.harui@wsj.com)