Global Markets:
- Asian stock markets: Nikkei down 1.35 %, Shanghai Composite gained 0.45 %, Hang Seng rose 0.90 %, ASX 200 declined 0.25 %
- Commodities: Gold at $1322 (-0.35 %), Silver at $19.62 (-0.10 %), WTI Oil at $43.25 (+0.25 %), Brent Oil at $45.30 (+0.40 %)
- Rates: US 10 year yield at 1.55, UK 10 year yield at 0.81, German 10 year yield at -0.04
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index 24-Jul: 115.5 (prev. 114.9)
- Japan PPI Services (YoY) Jun: 0.20% (est. 0.10%, prev. 0.20%)
- New Zealand Trade Balance (NZD) Jun: 127M (est. 150.0M, prev. 358.0M)
- South Korea GDP (QoQ) Q2: 0.70% (est. 0.70%, prev. 0.50%)
- South Korea GDP (YoY) Q2: 3.20% (est. 2.90%, prev. 2.80%)
- Japan shares slip, yen gains as uncertainty grips – RTRS
- Oil prices edge away from three-month lows, but mood remains bearish – RTRS
Markets Update:
USD/JPY declined overnight after new details about the planned economic stimulus programme in Japan came out. The size of the programme is said to be 6 trillion Yen, which is quite smaller than the 20-30 trillion expected by the market. USD/JPY fell from 105.90 to a low of 104.60 so far. The pair ralied from 100 to 107.50 this month on anticipation of further BoJ easing as well as the above mentioned stimulus package, but traders are now concerned that expectations have been too high.
EUR/USD was quiet overnight and traded within a 1.0980-95 range. GBP/USD fell slightly in the early Asian session as Bloomberg reported that a BoE MPC member had changed his mind and called for further stimulus. The pair declined from 1.3145 to 1.3080, from where it bounced back to 1.3120.
The commodity currencies have rallied overnight, despite overall USD and JPY strength. AUD/USD jumped from 0.7460 to 0.7535, while NZD/USD rose from 0.6980 to 0.7060. Meanwhile, the Canadian Dollar remains weak mid falling oil prices. USD/CAD did retrace somewhat in Asia, but only from 1.3240 to 1.32.
Upcoming Events:
- 13:55 BST – US Redbook
- 14:45 BST – US Services PMI
- 15:00 BST – US CB Consumer Confidence
- 15:00 BST – US New Home Sales
- 15:00 BST – US Richmond Manufacturing Index
