- Tokyo core CPI up by 2.8% vs. 2.7% forecast
- Japan’s national core CPI up by 3.3% as expected
- Nikkei closed 1.13% higher for the day
- New Zealand ANZ business confidence down from 42.8 to 39.7
- German GfK consumer climate and IFO business climate data due
- U.K. preliminary GDP reading to show 0.8% growth
Retreat, retreat! After charging aggressively recently, pound and Kiwi bears took a break in the past few trading hours. GBP/USD bounced off its recent lows at 1.6965 and pulled up to the 1.6990 levels while NZD/USD fighting to hold on to the .8575 area. Data from New Zealand was actually weak, with the ANZ business confidence index dropping from 42.8 to 39.7 for July.
In Japan, the latest set of inflation figures proved that the BOJ might have nothing to worry about in terms of price pressures for now. Tokyo core CPI is up by 2.8% versus the 2.7% estimate while the national core CPI showed a 3.3% increase as expected. The Nikkei ended the day with a 1.13% gain, yet the yen struggled to regain ground against its forex counterparts.
USD/JPY appears to have made an upside break from the 101.50 key resistance area, as it climbed to a high of 101.85 before pulling back. EUR/JPY managed to keep its head above the 137.00 major psychological handle while GBP/JPY is trading within 10 pips below the 173.00 mark.
Data coming up in the next few hours includes the GfK consumer climate and IFO business climate figures from Germany and the U.K. preliminary GDP reading for Q2. Both consumer and business sectors could show an improvement in sentiment for euro zone’s largest economy while the U.K. is expected to print a growth figure of 0.8%. Weaker than expected results could force either the pound or the euro to resume their selloff, so y’all better watch out!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!