Global Markets:
- Asian stock markets: Nikkei down 0.40 %, Shanghai Composite fell 0.45 %, Hang Seng lost 0.50 %, ASX 200 gained 0.05 %
- Commodities: Gold at $1343 (+0.20 %), Silver at $20.26 (+0.35 %), WTI Oil at $41.08 (-0.15 %), Brent Oil at $43.23 (0.00 %)
- Rates: US 10 year yield at 1.49, UK 10 year yield at 0.71, German 10 year yield at -0.09
News & Data:
- Japan National CPI Ex-Food, Energy (YoY) Jun: 0.4% (est. 0.50%, prev. 0.60%)
- Tokyo CPI (YoY) Jul: -0.4% (est. -0.50%, prev. -0.50% -Tokyo CPI Ex-Fresh Food (YoY) Jul: 0.4% (est. -0.50%, prev. -0.50%)
- Japan Jobless Rate Jun: 3.1% (est. 3.20%, prev. 3.20%)
- Japan Overall Household Spending (YoY) Jun: -2.2% (est. -0.30%, prev. -1.10%)
- Japan Industrial Production (MoM) Jun P: 1.9% (est. 0.50%, prev. -2.60%)
- Japan Retail Sales (MoM) Jun: 0.2% (est. 0.30%, prev. -0.10%)
- Australia PPI (QoQ) Q2: 0.1% (prev. -0.20%)
- Australia PPI (YoY) Q2:1.0% (prev. 1.20%)
- New Zealand M3 Money Supply (YoY) June: 5.9% (prev. 7.3%
- New Zealand ANZ Activity Outlook (Jul): 31.4 (prev. 35.1)
- New Zealand Building Permits (MoM) June: 16.3% (prev. -0.9%)
- UK GfK Consumer Confidence Jul: -12 (est. -8, prev. -1)
- UK Lloyds Business Barometer Jul: 29 (prev. 6)
Markets Update:
USD/JPY is highly volatile ahead of the Bank of Japan announcement. The pair collapsed ahead of the Tokyo open and the move has been partly blamed on algos, along with poor liquidity. It fell from 105.30 to a low of 103.31, only to retrace more than half of the move 15 minutes later.
EUR/USD consolidated in a 1.1075-88 range overnight, with flows light. Better activity was seen in GBP/USD, which rose from 1.3150 in the early Asian session to a high of 1.3210. The commodity currencies remain well bid and extended gains against the US Dollar overnight, with AUD/USD back above 0.75 and NZD/USD sustaining momentum above 0.71 so far.
Upcoming Events:
- 06:30 BST – French GDP
- 07:00 BST – German Retail Sales
- 07:30 BST – Bank of Japan Press Conference
- 07:45 BST – French CPI
- 08:00 BST – Spanish CPI
- 08:30 BST – Swedish GDP
- 10:00 BST – Euro Zone CPI
- 10:00 BST – Euro Zone GDP
- 13:30 BST – US GDP
- 13:30 BST – Canadian GDP
- 14:30 BST – FOMC Member Williams speaks
- 14:45 BST – Chicago PMI
- 15:00 BST – US Michigan Consumer Sentiment
