Note

JAPANESE MONETARY BASE EXPANDS FAR LESS THAN EXPECTED IN MAY, GROWING 0.9% VERSUS 2.2% FORECASTS

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Japan's Monetary Base, or the amount of currency being supplied by the Bank of Japan (BoJ) as measured by combining all notes and coins in circulation in addition to current account balances, eased to 0.9% for the year ended in May as Japanese markets struggle to find uses for additional cash supplied by the BoJ. Investors broadly expected May's annualized Monetary Base to expand by 2.2% YoY, a slight uptick from the previous period's 2.1%.

Market reaction

USD/JPY is battling the 156.00 handle in the early hours of the Pacific market session. The pair is down from the week's early bids near 157.40 and testing into near-term lows as the Greenback falls in a broad-market recovery in risk appetite.


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