Global Markets:
- Asian stock markets: Nikkei up 0.80 %, Shanghai Composite fell 0.20 %, Han g Seng rose 0.45 %, ASX 200 rallied 0.35 %
- Commodities: Gold at $1358 (-0.50 %), Silver at $20.17 (-1.50 %), WTI Oil at $41.15 (+0.75 %), Brent Oil at $43.30 (+0.45 %)
- Rates: US 10 year yield at 1.55, UK 10 year yield at 0.80, German 10 year yield at -0.05
News & Data:
- Australia Retail Sales (MoM) Jun: 0.1% (exp 0.3% prev 0.2%)
- Australia Retail Sales Ex-Inflation (QoQ) Q2: 0.4% (exp 0.5% prev 0.5%)
- PBoC Fixes Yuan Reference Rate at 6.6444 (prev 6.6195)
- BOJ's Iwata: Won't hesitate to add stimulus if needed, BOJ welcomes government stimulus efforts.
- Iwata: BoJ Increased ETF Purchases to Prevent Worsening of Corporate and Household Sentiment
- Iwata: Expect Consumer Prices to Reach 2.0% Price Target in Fiscal 2017 But There Is a Lot of Uncertainty About This View — RTRS
- Iwata: Expect Consumer Spending to Recover Due to Tight Labour Market
- Iwata: Expect Government Stimulus Spending to Contribute a Lot to Growth This and Next Fiscal Year
- Goldman Sachs: Japan's central bank is reaching the limits of its stimulus program
Markets Update:
USD/JPY fell sharply in the early Asian session, from 101.35 to 100.85, but recovered after Asian equity markets turned positive. It bounced off 100.85 and rallied back to 101.30. BoJ member Iwata spoke overnight and said that the central bank will add further stimulus if needed.
Otherwise, flows were rather light overnight. EUR/USD traded within a 1.1135-55 range, while GBP/USD fell back to 1.3330 after failing again at 1.3345 resistance. The focus today will be on the Bank of England rate decision, where the bank is expected to cut its main rate by 25bps to 0.25 %. BoE Governor Carney will hold a press conference half an hour later, at 1130 GMT.
Commodity currencies rose overnight. AUD/USD rallied from 0.7585 in the early session to a high of 0.7625 after the Tokyo open. NZD/USD followed it higher, from 0.7150 to 0.7185.
Upcoming Events:
- 09:00 BST – ECB Economic Bulletin
- 09:10 BST – Euro Zone Retail PMI
- 11:15 BST – FOMC Member Kaplan speaks
- 12:00 BST – Bank of England Rate Decision
- 12:30 BST – BOE Governor Carney speaks
- 13:30 BST – US Initial Jobless Claims
- 15:00 BST – US Factory Orders
