No data? No volatility! Thanks to a lack of fresh catalysts, the major currencies were mostly in tight ranges for most of the Asian session.
- Japan’s flash manufacturing PMI slips from 53.0 to 51.6 in July
- BOJ’s core CPI (y/y) lower at 0.4% vs. 0.6% expected, 0.5% previous
Mixed market sentiment
There were no major economic reports printed during the Asian session, so market players mostly played with catalysts from the previous session.
The dollar, specifically, encountered a bit of profit-taking after getting a boost from higher bond yields during the U.S. session.
The Asian bourses also reversed losses from yesterday. Nikkei found reprieve from the yen taking a chill pill from its gains, while the Chinese markets were supported by the People’s Bank of China (PBoC) injecting liquidity into its markets yesterday.
- Nikkei is up by 0.55% to 22,519.4
- A SX 200 is up by 0.33% to 6,263.5
- Shanghai index is up by 1.59% to 2,904.934
- Hang Seng is up by 1.49% to 28,676.0
Commodity prices haven’t recovered from the dollar’s gains, however.
- Gold is down by 0.25% to $1,221.31
- Brent crude oil is down by 0.11% to $72.81
- U.S. WTI is down by 0.25% to $67.65
Major Market Mover(s):
A lack of fresh catalysts kept most of the major currencies in tight ranges. In fact, the biggest “mover” was the yen, which was propped higher by Japanese exporters exchanging their foreign currencies for domestic ones ahead of the month’s end.
USD/JPY is down by 5 pips (-0.04%0 to 111.29
NZD/CHF is down by 5 pips (-0.06%) to 75.48
GBP/JPY is down by 8 pips (-0.06%) to 145.74
EUR/JPY is down by 13 pips (-0.10%) to 130.06
CHF/JPY is down by 12 pips (-0.11%) to 112.06
CAD/JPY is down by 6 pips (-0.08%) to 84.46
AUD/JPY is down by 6 pips (-0.07%) to 82.12.
Watch Out For:
- 7:00 am GMT: France’s flash manufacturing PMI (52.6 expected, 52.5 previous)
- 7:00 am GMT: France’s flash services PMI (55.7 expected, 55.9 previous)
- 7:30 am GMT: Germany’s flash manufacturing PMI (55.5 expected, 55.9 previous)
- 7:30 am GMT: Germany’s flash services PMI (54.6 expected, 54.5 previous)
- 8:00 am GMT: Euro Zone’s flash manufacturing PMI (54.7 expected, 54.9 previous
- 8:00 am GMT: Euro Zone’s flash services PMI (55.0 expected, 55.2 previous)
- 10:00 am GMT: U.K.’s CBI industrial order expectations (8 expected, 13 previous)