Daily Digest Market Movers: Japanese Yen advances after the BoJ Governor Ueda’s speech

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  • Japan’s National Consumer Price Index increased by 2.8% year-on-year in July, maintaining this rate for the third consecutive month and remaining at its highest level since February. Additionally, the National CPI excluding Fresh Food rose by 2.7%, the highest reading since February, aligning with expectations.
  • The US Composite PMI edged down to 54.1 in August, a four-month low, from 54.3 in July, but remained above market expectations of 53.5. This indicates continued expansion in US business activity, marking 19 consecutive months of growth.
  • The S&P Global US Services PMI increased to 55.2 in August 2024, from 55.0 in July, defying expectations of a drop to 54.0. Meanwhile, the Manufacturing PMI declined to 48.0 in August from 49.6 the previous month, falling short of market expectations of 49.6 and signaling the second consecutive contraction in US factory activity at the sharpest rate this year.
  • On Thursday, Federal Reserve Bank of Boston President Susan Collins expressed confidence that the US central bank can reduce inflation without causing a recession and indicated her support for beginning interest rate cuts next month. In an interview with Reuters at Jackson Hole, Collins stated, "I think there's a clear path to achieving our goals without an unnecessary downturn, and with a labor market that remains healthy."
  • Kansas City Fed President Jeff Schmid mentioned in an interview with broadcaster CNBC at Jackson Hole, that he is closely examining the factors behind the rise in the unemployment rate and will rely on data to determine whether to support a rate reduction next month.

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