Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
News
Tuesday, June 30, 2026
What’s happening: The Japanese yen traded lower against the US dollar this morning.
What happened: Investors responded to the latest economic reports released by Japan this morning.
The Japanese yen dipped to its weakest level since 1986, raising concerns of a direct currency intervention from Tokyo.
Why it matters: The Japanese yen remained under pressure due to the wide interest rate gap between the US and Japan. While the Bank of Japan has continued its policy normalisation, the US Federal Reserve is projected to announce interest rate hikes in 2026.
Investors have so far mostly shrugged off several interventions from Japan and BoJ rate hikes over the last few months with the US-Iran conflict raising inflationary concerns.
Sustained demand for the greenback as a safe-haven asset also continued to exert pressure on the yen. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained 0.1% to 101.22 this morning.
Investors remained concerned due to the dependence of Japan’s economic growth on Middle Eastern crude oil imports. The US and Iran reached a 14-point interim peace deal on June 17 to halt the conflict and reopen the Strait of Hormuz.
On the economic data front, industrial production in Japan rose 0.5% in May, in-line with April’s pace. However, the figure came in short of market expectations of 1.1%, due to the impact of the US-Iran conflict on supply chains.
Japan’s industrial output grew for the second straight month. On an annual basis, industrial output in Japan contracted by 1.7%, compared to a 2.0% gain in April. This marked the first decline in industrial output in six months.
Japan’s unemployment rate came in unchanged from the previous month at 2.5% in May, matching market estimates. The jobless rate remained at its lowest mark since July 2025, with the number of unemployed people declining by 50,000 to a 10-month low, while employment surged by 610,000 to a record high.
The USD/JPY forex pair gained more than 0.1% to reach 162.07 this morning. The yen is on track to record a decline of around 2% versus the greenback in the second quarter, which would be its fourth consecutive quarter of decline.
Meanwhile, Japan’s Nikkei 225 rose 0.46% to trade at 69,787.95 this morning.
What to watch: Investors will keep an eye on the Bank of Japan’s policy moves and watch the resumption of US-Iran peace talks in Doha, Qatar, with lower crude oil prices helping ease inflation worries in Japan.
Data on US jobs report, due to be released on Thursday, will also remain in focus for further insights into the Fed’s monetary-policy outlook. The US economy, which added 172,000 jobs in May, is expected to add 114,000 jobs in June, while the unemployment rate is expected to remain at 4.3% in the month.
Context: Equity markets in China traded mixed this morning as investors digested the latest economic reports.
Details: Data released this morning showed that China’s NBS composite PMI output index rose to 50.6 in June from 50.5 in the previous month. This marked the strongest reading since December 2025.
China’s official NBS manufacturing PMI rose to 50.3 in June from 50.0 in May, topping market estimates of 50.1. This was also the fourth straight month of growth in factory activity. China’s official NBS non-manufacturing PMI also rose to 50.2 in June from 50.1 in the previous month, beating market projections of 49.9.
Meanwhile, signs of de-escalation in the US-Iran tensions lent support to broader market sentiment, with the countries expected to resume peace talks in Doha, Qatar this week.
China’s CSI 300 Index gained 0.32% to 4,942.60 this morning, while the SSE Composite Index fell 0.29% to trade at 4,061.93.
Meanwhile, the USD/CNY forex pair edged higher to 6.7942 this morning on Tuesday.
What to watch: Investors will continue monitoring developments related to the US-Iran peace talks.
Data on RatingDog manufacturing PMI from China (0545 UAE Time) will be released on Wednesday. The RatingDog China manufacturing PMI, which fell to 51.8 in May versus a five-year high of 52.2 in the previous month, is expected to ease further to 51.4 in June.
Other Markets: US trading indices closed higher on Monday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.59%, 1.18% and 2.07%, respectively.
Russia’s President Vladimir Putin said that the country was facing a “certain shortage” of fuel following repeated attacks by Ukraine, although the situation is not critical. The news sent the USD/RUB pair lower in forex trading this morning.
The Philippines’ trade deficit widened to $5.5 billion in May from $3.6 billion in the year-ago month, which lent support to the USD/PHP forex pair.
South Korea’s industrial production contracted by 3.0% in May, after a 0.7% decline in April. This being the steepest decline in industrial output since October 2025 sent the USD/KRW pair higher in forex trading this morning.
Argentina’s economic activity grew 1.6% year-over-year in April, easing from 6.2% in the previous month, which lent support to the USD/ARS forex pair.
New Zealand’s ANZ business outlook index rose to 36.6 in June from 10.0 in May. Although this was the highest level since February, the NZD/USD pair fell in forex trading this morning.
Italy’s PPI (1200 UAE Time) and inflation rate (1300 UAE Time), Spain’s current account (1200 UAE Time), India’s government budget value (1430 UAE Time), Brazil’s gross debt to GDP (1530 UAE Time), nominal budget balance (1530 UAE Time) and PPI (1600 UAE Time), Germany’s inflation rate (1600 UAE Time), South Africa’s balance of trade (1600 UAE Time), Canada’s GDP (1630 UAE Time) and budget balance (1900 UAE Time) as well as US Redbook index (1655 UAE Time), S&P/Case-Shiller home price index (1700 UAE Time), FHFA house price index (1700 UAE Time), JOLTs job openings (1800 UAE Time), CB consumer confidence (1800 UAE Time), Dallas Fed services index (1830 UAE Time) and Dallas Fed services revenues index (1830 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
