June 21, 2017
Indicative Interbank spot sell rates only as of 9:00 AM PST.
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In the United States, While the pace of sales gains was faster than expected in May, existing home sales are still growing only modestly, as supply remains tight. Price gains remain robust with limited inventory. The typical property was on the market for a record-low 27 days in May, down from 29 in April, and 32 days a year ago. That said, months' supply is creeping back up just a touch, now 4.2 months from a low of 3.8 months earlier this year. Overall, the tight supply conditions for existing homes suggests prices gains should continue, albeit at a slightly slower pace with more inventory coming to market, and the pace of existing home sales should continue to grow at a 2.5-5.0% annual pace as long as labor market conditions remain solid. Existing Home Sales rose by 1.1% in May to 5.62 million, compared with market expectations for a decline to 5.55 million. The prior month was revised down from 5.57 to 5.56 million.
British pound is trading at 1.2657 as of 10:58 am PST. The pound jumped, reversing an earlier decline, after Bank of England chief economist Andy Haldane said that the risks of leaving policy tightening too late are rising and that he considered voting for an interest-rate increase this month. U.K. government bonds declined after Haldane’s remarks, while money markets moved to price in a more than 50 percent chance of a 25-basis-point hike by the end of 2017, from 21 percent on Tuesday. Pound was set for its biggest daily climb in a week against the dollar, after earlier reaching the lowest level since the day Prime Minister Theresa May called this month’s election. The pound’s rally after the comments by Haldane, usually on the more dovish side of the BOE’s Monetary Policy Committee, is another example of how the currency has been buffeted by a growing split among policy makers. It climbed on June 15 when minutes of officials’ June meeting showed two MPC members unexpectedly joined Kristin Forbes in calling for higher rates, and tumbled Tuesday when Governor Mark Carney signaled he wasn’t in a hurry to raise interest rates any time soon.
Japanese yen is trading at 111.32 as of 10:59 am PST. Japan's all industry activity rebounded in April from March, data published by the Ministry of Economy, Trade and Industry showed Wednesday.
The all industry activity index climbed 2.1% month-on-month in April, reversing a 0.7% fall in March. The monthly rate also exceeded the expectations of 1.6%. Construction activity surged 7.3% in contrast to March's 0.9% drop. Likewise, industrial output advanced 4% following a 1.9% decrease. Tertiary industry activity grew 1.2% versus a 0.3% fall in March. On a yearly basis, all industry activity growth accelerated to a 5-month high of 1.9% from 1% in March.
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.