Week in review
- U.S. added 147k jobs in June, unemployment rate fell to 4.1%
- China NBS and Caixin PMIs rose to 50.7 and 51.3 in June, respectively
- Eurozone inflation rate rose to 2.0% y/y
Week ahead
- China inflation rate and trade data
- Reserve Bank of Australia policy meeting
- Bank of Korea policy meeting
Thought of the week
Asian currencies have seen a notable appreciation this year, with most gaining between 6% to 12% against the USD year-to-date. While this trend is partly attributed to the fading narrative of U.S. exceptionalism, as the DXY index fell for six consecutive months, various domestic factors have added to Asian currencies’ strength. In South Korea, the announcement of a second supplementary budget, renewed commitments to corporate governance reforms, and political stabilization have been pivotal in strengthening the KRW. Additionally, the repatriation of foreign currencies has further reinforced the value of several Asian currencies. The CNY, while appreciating at a more moderate pace year-to-date, is more resilient compared to the previous trade tension episode in 2018-2019, buoyed by promising developments in U.S.-China trade negotiations. Should other Asian economies also reach a favourable trade agreement with the U.S., these are likely to provide additional tailwind to the appreciation of Asian currencies.
Year-to-date performance on USD and Asian currencies
Source: FactSet, J.P. Morgan Asset Management. Data reflect most recently available as of 04/07/25.
Market data
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All returns in local currency unless stated otherwise.
Currencies’ return are based on foreign currencies per U.S. dollar. An appreciation of the foreign currency against the U.S. dollar would be positive and a depreciation of the foreign currency against the U.S. dollar would be negative.