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
Wednesday, June 17, 2026
What’s happening: The Japanese yen rose against the US dollar this morning as investors assessed the latest economic reports.
What happened: Japan reported stronger-than-expected trade data this morning, improving domestic market sentiment.
Some weakness in the US dollar provided a further boost to the Japanese currency this morning.
Why it matters: Data released this morning showed Japan’s trade deficit shrank to ¥378.7 billion in May from ¥662.5 billion in the year-ago period. The figure was better than market estimates of a deficit of ¥564.6 billion, with growth in exports outpacing imports.
Exports surged 17% year-over-year to ¥9,511.5 billion, accelerating from 14.8% in the previous month. This marked the strongest growth since November 2022 and topping market estimates of 16.2%. It was driven by strong demand for automobiles and semiconductors. Meanwhile, imports rose 12.5% to ¥9,890.2 billion, accelerating from April’s 9.8% growth, but coming in below market expectations of 12.8%.
Japan’s core machinery orders jumped by 8.7% to ¥1,098.5 billion in April, recovering sharply from the 9.4% contraction recorded in the previous month. The data release exceeded market estimates of a 0.9% gain.
The Reuters Tankan index for Japan’s manufacturers improved to +13 in June from +8 in the previous month, recording an improvement for the second consecutive month.
The recent data followed the Bank of Japan’s decision to hike its benchmark interest rate by 25 basis points to 1%, in a bid to contain inflation and provide support to the yen.
Meanwhile, the Federal Reserve is widely expected to keep rates unchanged at its monetary policy meeting later today.
Investors also continued monitoring developments around the signing of the US-Iran peace deal on Friday, which is hoped to result in the reopening of the Strait of Hormuz and help restart energy flows from the Middle East.
Some weakness in the US dollar lent further support to Japanese yen. The US dollar index, which measures the greenback’s performance versus a basket of major peers, edged lower to 99.52 this morning.
The USD/JPY forex pair fell around 0.1% to 160.34 this morning, while the Nikkei 225 surged around 0.7% to trade at 69,880.21.
What to watch: Investors will continue monitoring developments related to the US-Iran deal.
Data on Japan’s inflation rate (0330 UAE Time) and Bank of Japan’s monetary policy meeting minutes (0350 UAE Time) will be released on Friday. Japan’s annual inflation, which eased to 1.4% in April from 1.5% in the previous month, is expected to rise to 1.6% in May.
Context: Equity markets in Europe closed higher on Tuesday as investors digested the latest economic reports.
Details: European stocks rose sharply on Monday, taking the STOXX Europe 600 to a record high on news of the US and Iran agreeing to sign a peace deal. Europe’s equity markets extended their gains on Tuesday amid optimism around the deal being signed on Friday.
Banking stocks rose amid a decline in bond yields and an improvement in credit conditions, with shares of BBVA and Intesa Sanpaolo rising more than 2% on Tuesday. UniCredit’s stock surged more than 4% on Tuesday after Germany’s government rejected its bid for Commerzbank. Industrial stocks also recorded sharp gains, with shares of Safran and Schneider settling higher.
Data released on Tuesday showed that the ZEW indicator of economic sentiment for the Eurozone jumped 18.6 points to a reading of 9.5 in June. This was significantly higher than market estimates of -7.2 and was driven by hopes of a resolution to the US-Iran conflict, which is expected to ease pressure on energy prices and inflation.
Wages and salaries in the Eurozone rose 3.4% year-over-year in the first quarter, compared to a 3.1% gain in the last quarter of 2025. Hourly labour costs rose by 3.2% year-over-year in the first quarter, following a 3.3% gain in the fourth quarter.
Germany’s ZEW indicator of economic sentiment also climbed by 20.7 points to 10.5 in June, recording its first positive reading since the US-Iran conflict weighed on investor confidence in March.
The STOXX Europe 600 Index rose 0.25% to settle at 636.00 on Tuesday, while London’s FTSE 100 gained 0.61% to close at 10,494.21. Germany’s DAX 40 rose 0.07% and France’s CAC 40 added 0.75%.
The EUR/USD forex pair edged higher to 1.1613 this morning, while the EUR/GBP pair slipped to 0.8648.
What to watch: Investors will continue monitoring developments related to the US-Iran peace deal.
Data on Eurozone’s inflation rate (1300 UAE Time) will be released today. Analysts expect Eurozone’s consumer price inflation to accelerate to 3.2% in May from 3.0% in the previous month, recording the highest reading since September 2023 and significantly above the European Central Bank’s 2.0% target.
Other Markets: US trading indices closed mixed on Tuesday, with the S&P 500 and Nasdaq 100 down by 0.57% and 1.89%, respectively, and the Dow Jones index up by 0.64%.
A drone strike by Russia hit a zoo in Ukraine’s second-biggest city, Kharkiv. The news sent the USD/RUB pair lower in forex trading this morning.
Singapore’s non-oil domestic exports jumped 38.4% year-over-year in May, accelerating from 24.4% growth in April. The latest reading topping market estimates of 30.0% growth exerted pressure on the USD/SGD forex pair.
New Zealand’s current account deficit widened to NZ$1.01 billion in the first quarter from NZ$0.71 billion in the year-ago period. However, the latest reading coming in below than market estimates of a NZ$1.03 billion deficit sent the NZD/USD pair higher in forex trading this morning.
Colombia’s retail sales jumped 14.9% year-over-year in April, accelerating from 13.4% in the previous month. The latest reading topping market estimates of 11.4% exerted pressure on the USD/COP forex pair.
Chile’s central bank held its benchmark interest rate at 4.5% at its recent meeting, which sent the USD/CLP pair higher in forex trading this morning.
South Africa’s inflation rate (1200 UAE Time) and retail sales (1500 UAE Time), France’s IEA oil market report (1300 UAE Time), US MBA mortgage applications (1500 UAE Time), retail sales (1630 UAE Time), business inventories (1800 UAE Time), pending home sales (1800 UAE Time), EIA crude oil stocks change (1830 UAE Time), Fed interest rate decision (2200 UAE Time) and Fed press conference (2230 UAE Time), Brazil’s IBC-BR economic activity (1600 UAE Time), Canada’s new housing price index (1630 UAE Time) as well as Russia’s GDP growth rate (2000 UAE Time) and PPI (2000 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.
