USD and JPY Lower on Improved Risk Sentiment

USD/JPY

Financial and Economic News and Comments

US & Canada

• The Chicago Fed national activity index stood at -2.30 in May, little changed from -2.27 in April, indicating economic activity remained weak, the Federal Reserve Bank of Chicago said.
• Declines in Texas manufacturing activity eased further in June, with the Dallas Fed general business activity index increasing to -20.4 from May's -21.5, the Federal Reserve Bank of Dallas said.

Europe

• Eurozone economic confidence rose for a third consecutive month in June, with the eurozone economic sentiment indicator rising more than anticipated to 73.3, the highest since November, from May's upwardly revised 70.2, data from the European Commission showed. Consumer sentiment improved in June with the consumer confidence indicator increasing to -25 from May's upwardly revised -28. The manufacturing confidence indicator was up to -32 from May's upwardly revised -33, while retailer confidence fell.

Eurozone Economic Sentiment

• The UK average house price held at £155,600 ($257,000) for a second month in June, stopping its month-onmonth decline for the first time in 20 months, Hometrack Ltd. reported. June house prices declined 8.7% y/y, following May's 9.6% y/y drop.
• The May £0.6 billion increase in total net lending to individuals was lower than the April £1.1 billion increase; the £0.3 billion increase in net lending secured on dwellings was lower than the April £0.9 billion increase; and consumer credit rose by a net £0.3 billion, the Bank of England reported.
• UK mortgage approvals increased less than expected to 43,400 in May from 43,200 in April, data from the BOE showed.

Asia-Pacific

• Japan's industrial production rose 5.9% m/m in May, a third month-on-month gain and the fastest rate since 1953, according preliminary May IP data from the Ministry of Economy, Trade and Industry, matching April's month-on-month rise. May IP fell 29.5 y/y, following April's 30.7% y/y drop.

Japan, Total Industrial Production

Japanese retail sales were unchanged m/m in May after a 0.7% m/m increase in April, the METI said. May retail sales were down 2.8% y/y, a ninth year-on-year decline, the same pace as in April. Large retailers' sales fell 6.5% y/y, following April's 6.7% y/y decrease.

Japan, Retail Sales

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