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The Japanese yen is on its own at the front to start the week but the dollar is also seen holding slightly firmer now as after a short period of consolidation since Friday. Both EUR/USD and GBP/USD are down 0.3% to 1.0860 and 1.2895 respectively, touching their lowest levels since 11 July. The latter looks on course for a further retracement after buyers attempted and failed at their latest attempt to hold a break above 1.3000:

The 38.2 Fib retracement level at 1.2879 is the next minor support level to watch, before the 50.0 Fib retracement level at 1.2828 comes in.

The dollar’s slight nudge higher today comes despite yields keeping lower and equities holding a more tentative mood. US futures are flattish mostly now, with tech shares in focus awaiting earnings from Alphabet and Tesla after the close.

It’s a bit of a tough one to get a real grasp on the flows in the last few days. USD/JPY is still down 0.6% at 156.05 but the dollar is up elsewhere with AUD/USD and NZD/USD both also down 0.3% to 0.6620 and 0.5960 respectively currently.

It is not quite a quiet summer but it is one that is still tough to sort of the flows, at least for now. But as always, the best we can do is to at least look at the technicals and manage our approach from there.

This article was written by Justin Low at www.forexlive.com.

After having hit its highest since the opening day in January, the pair has seen quite a pullback in the last week. The drop after nearly touching the 0.6800 mark now sees the pair down 2.5% from its high on 11 July. And the pair looks poised for a seventh straight day of losses now:

Despite stocks faring better yesterday to start the week, there was no reprieve for the aussie. The dollar is keeping in good stead and that now sees the pair return lower targeting a couple of key support levels.

Of note, the 28 June low at 0.6619 is within touching distance but keen eyes will be on the 100-day moving average (red line) at 0.6607 instead. That alongside the 200-day moving average (blue line) at 0.6583 are the big ones to watch out for.

The latter also rests near the 50.0 Fib retracement level of the swing higher since April, seen at 0.6580. That sets out a key supportive region for AUD/USD in the coming days to see if buyers can hold their ground.

A break below that region will see sellers resume the downside pressure in the pair, looking to 0.6500 next once more.

Looking to the rest of the week, there will be a couple of key drivers worth taking note of. The first being the movement in the Chinese yuan, which indirectly impacts the aussie.

Then, there’s also the overall risk mood as stocks look to find some footing after last week’s selloff. Earnings releases from Alphabet and Tesla after the close today will be key risk events to be mindful of in that regard.

And lastly, the dollar side of the equation will also factor into the picture. That comes as we will have some key data from the US, including PMI data tomorrow, Q2 GDP on Thursday, and the PCE price index on Friday.

This article was written by Justin Low at www.forexlive.com.

The post Ex-Dividend 24/07/2024 first appeared on IC Markets | Official Blog.

Amid a lack of events on the economic calendar, the Japanese yen has been a decent mover to start the week thus far. After the gains yesterday, we are seeing a further advance today with USD/JPY now down 0.6% to near 156.00 on the day. AUD/JPY in particular is suffering the most, down another 1% as it erases its gains from June and then some now:

There’s not much of a major catalyst driving the yen gains this month. But the run comes after Japan intervened two weeks ago, resulting in a technical breakdown in USD/JPY of this particular trendline at the time as well.

The bond market may be what some traders can point to earlier this month but it hasn’t quite been the case in the past few days. 10-year yields in the US may be down today but are seen at 4.24%, faring much better from the low near 4.14% last week.

As the retracement in the yen continues to run for now, these are some levels to watch for USD/JPY.

This article was written by Justin Low at www.forexlive.com.

The post Ex Dividend Stocks first appeared on IC Markets | Official Blog.

The post Earning Report first appeared on IC Markets | Official Blog.

• Eurostoxx +0.3%
• Germany DAX +0.5%
• France CAC 40 -0.1%
• UK FTSE -0.3%
• Spain IBEX flat
• Italy FTSE MIB +0.3%

This comes as US futures are seen down slightly at the balance as well. S&P 500 futures are lower by 0.2% with Nasdaq futures down by 0.3% currently. That is not making much for traders to work with as the session gets going. The dollar remains steadier overall, down slightly against the yen but up slightly against the antipodeans – similar to yesterday.

This article was written by Justin Low at www.forexlive.com.

Global Markets:

•  Asian Stock Markets : Nikkei down 0.09%, Shanghai Composite down 0.82%, Hang Seng down 0.71% ASX up 0.55%
• Commodities : Gold at $2394.5 (-0.17%), Silver at $29.21 (-0.64%), Brent Oil at $82.33 (-0.07%), WTI Oil at $78.29 (-0.21%)
• Rates : US 10-year yield at 4.245, UK 10-year yield at 4.165, Germany 10-year yield at 2.492

News & Data:

• (CNY) 1-y Loan Prime Rate  -1.3% vs -0.5% expected
• (CNY) 5-y Loan Prime Rate  -0.8% vs -0.5% expected

Markets Update:

Asia-Pacific markets experienced mixed trading on Tuesday, following Wall Street’s gains despite political uncertainties. Australia’s S&P/ASX 200 increased by 0.5%. Japan’s Nikkei 225 slightly declined by 0.09%, while the Topix index inched up by 0.08%. In South Korea, the Kospi rose by 0.46%, and the Kosdaq went up by 0.48%. The producer price index for June in South Korea increased by 2.5% year-on-year, compared to a 2.3% rise in May. Shares of Kakao, a popular messaging app, dropped 4.63% after reports of an arrest warrant issued for its founder, Brian Kim, over market manipulation allegations.

Taiwan’s Taiex surged by 2.4%, breaking a four-day losing streak, led by gains in real estate, industrials, and tech sectors, according to LSEG data. Hong Kong’s Hang Seng Index fell by 0.69%, while Mainland China’s CSI 300 decreased by 1%. India’s Nifty 50 and the BSE Sensex remained relatively unchanged in early trading. India is set to reveal its first budget under Prime Minister Narendra Modi’s third term. Barclays analysts expect the government to indicate policy consistency in the budget, highlighting continued fiscal consolidation with slight adjustments in spending.

Singapore’s consumer price index for June rose by 2.4% year-on-year, beating Reuters’ expectations of a 2.7% increase. This marked a slowdown from the 3.1% rise in May. Core inflation, which excludes accommodation and private transport costs, increased by 2.9% year-on-year, slightly below Reuters’ forecast of 3%.

In the U.S., the S&P 500 had its best day since June 5, as tech stocks rebounded following the index’s worst weekly loss since April. The S&P 500 climbed by 1.08% to close at 5,564.41. The Nasdaq Composite rose by 1.58% to finish at 18,007.57, and the Dow Jones Industrial Average increased by 127.91 points, or 0.32%, to close at 40,415.44.

Upcoming Events: 

• 2:00 PM GMT – USD Existing Home Sales
• 2:00 PM GMT – USD Richmond Manufacturing Index

The post Tuesday 23rd July 2024: Asia-Pacific Markets Mixed as Wall Street Rebounds first appeared on IC Markets | Official Blog.

IC Markets Europe Fundamental Forecast | 23 July 2024

What happened in the Asia session?

The dollar index (DXY) was relatively unchanged as it hovered around 104.25 while gold remained above $2,390/oz. Oil prices were retracing higher with WTI oil climbing towards$80 per barrel but overhead pressures remain and this commodity could resume the downtrend in the latter part of the day.

What does it mean for the Europe & US sessions?

Looking at U.S. inventory levels, the API stockpile has reduced strongly over the past three weeks to signal higher demand for crude oil stateside. With the latest forecast pointing to another decline of 2.5M barrels, a fourth consecutive week of higher drawdowns could potentially aid oil prices in finding a floor this week.

The Dollar Index (DXY)

Key news events today

Existing Home Sales (2:00 pm GMT)

Richmond Manufacturing Index (2:00 pm GMT)

What can we expect from DXY today?

Existing home sales have been poor throughout 2023 and the trend is no different this year – the latest estimate points to an annual sales rate of 3.99M homes in June, edging lower from 4.11M in the previous month. Meanwhile, the Richmond Manufacturing Index has deteriorated since mid-2022 and has remained weak ever since. Manufacturing activity slowed in June with the index coming in at -10 and July’s forecast of -7 points to a minor improvement in output levels. However, this sector remains hampered and is likely to signal depressed activity levels once more – a result that could potentially place the dollar under some pressure.

Central Bank Notes:

• The Federal Funds Rate target range remained unchanged at 5.25% to 5.50% for the seventh meeting in a row.
• The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run and judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year.
• The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. Inflation has eased over the past year but remains elevated and in recent months, there has been modest further progress toward the Committee’s 2% inflation objective.
• Recent indicators suggest that economic activity has continued to expand at a solid pace while job gains have remained strong, and the unemployment rate has remained low.
• In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks and does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.
• In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.
• In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. Beginning in June, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion.
• The Committee will maintain the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion and will reinvest any principal payments in excess of this cap into Treasury securities.
• Next meeting runs from 30 to 31 July 2024.

Next 24 Hours Bias

Weak Bullish

Gold (XAU)

Key news events today

Existing Home Sales (2:00 pm GMT)

Richmond Manufacturing Index (2:00 pm GMT)

What can we expect from Gold today?

Existing home sales have been poor throughout 2023 and the trend is no different this year – the latest estimate points to an annual sales rate of 3.99M homes in June, edging lower from 4.11M in the previous month. Meanwhile, the Richmond Manufacturing Index has deteriorated since mid-2022 and has remained weak ever since. Manufacturing activity slowed in June with the index coming in at -10 and July’s forecast of -7 points to a minor improvement in output levels. However, this sector remains hampered and is likely to signal depressed activity levels once more – a result that could potentially place the dollar under some pressure and lift gold prices.

Next 24 Hours Bias

Weak Bearish

The Australian Dollar (AUD)

Key news events today

No major news events.

What can we expect from AUD today?

The Aussie fell under 0.6650 overnight to mark the sixth consecutive day of decline. This currency pair was trading around 0.6640 as Asian markets came online – these are the support and resistance levels for today.

Support: 0.6630

Resistance: 0.6715

Central Bank Notes:

• The RBA kept the cash rate target unchanged at 4.35%, marking the ninth pause out of the last ten board meetings.
• Over the year to April, the monthly CPI indicator rose by 3.6% in headline terms, and by 4.1% excluding volatile items and holiday travel, which was similar to its pace in December 2023.
• The central forecasts published in May were for inflation to return to the target range of 2–3% in the second half of 2025 and to the midpoint in 2026 while there have been indications that momentum in economic activity is weak, including slow growth in GDP, a rise in the unemployment rate and slower-than-expected wages growth.
• Inflation is easing but has been doing so more slowly than previously expected and it remains high and the Board expects that it will be some time yet before inflation is sustainably in the target range.
• The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out.
• Next meeting is on 6 August 2024.

Next 24 Hours Bias

Weak Bearish

The Kiwi Dollar (NZD)

Key news events today

No major news events.

What can we expect from NZD today?

The Kiwi slid under 0.5980 overnight to mark the third consecutive day of decline. This currency pair was hovering around 0.5970 at the beginning of the Asia session – these are the support and resistance levels for today.

Support: 0.5870

Resistance: 0.6000

Central Bank Notes:

• The Monetary Policy Committee kept the OCR unchanged at 5.50% for the eighth meeting in a row and agreed that restrictive monetary policy is reducing domestic demand and consumer price inflation.
• The Committee is confident that inflation will return to within its 1-3% target range over the second half of 2024.
• The decline in inflation reflects receding domestic pricing pressures, as well as lower inflation for goods and services imported into New Zealand while recent monthly Selected Price Indexes suggest weakening in some of the more volatile inflation components, while survey measures of cost pressures and pricing intentions have continued to decline.
• Non-performing bank loans and corporate insolvencies have increased from low levels in line with declining economic activity while bank credit growth also remains very subdued, in line with weakness in the domestic economy and low business and consumer confidence.
• Next meeting is on 14 August 2024.

Next 24 Hours Bias

Weak Bearish

The Japanese Yen (JPY)

Key news events today

No major news events.

What can we expect from JPY today?

The yen’s continued strength in recent weeks has now caused USD/JPY to fall under 157 overnight. This currency pair was trading around 156.70 as Asian markets came online – these are the support and resistance levels for today.

Support: 154.70

Resistance: 158.50

Central Bank Notes:

• The Bank considers that the policy framework of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control and the negative interest rate policy to date have fulfilled their roles. With the price stability target of 2%, it will conduct monetary policy as appropriate, guiding the short-term interest rate as a primary policy tool.
• The Bank of Japan decided on the following measures:
  1. The Bank will encourage the uncollateralized overnight call rate to remain at around 0 to 0.1% while continuing its Japanese government bonds (JGB) purchases in accordance with the decisions made at the March 2024 MPM.
  2. The Bank decided, by an 8-1 majority vote, that it would reduce its purchase amount of JGBs thereafter to ensure that long-term interest rates would be formed more freely in financial markets.
• Underlying CPI inflation is expected to increase gradually, since it is projected that the output gap will improve and that medium- to long-term inflation expectations will rise with a virtuous cycle between wages and prices continuing to intensify.
• In the second half of the projection period of the April 2024 Outlook for Economic Activity and Prices (Outlook Report), it is likely to be at a level that is generally consistent with the price stability target of 2%.
• The year-on-year rate of increase in the CPI (all items less fresh food), has been in the range of 2.0-2.5% recently, as services prices have continued to rise moderately, reflecting factors such as wage increases, although the effects of a pass-through to consumer prices of cost increases led by the past rise in import prices have waned. Inflation expectations have risen moderately.
• Japan’s economy has recovered moderately, although some weakness has been seen in part while is likely to keep growing at a pace above its potential growth rate, with overseas economies continuing to grow moderately and as a virtuous cycle from income to spending gradually intensifies against the background of factors such as accommodative financial conditions.
• Next meeting is on 31 July 2024.

Next 24 Hours Bias

Weak Bearish

The Euro (EUR)

Key news events today

No major news events.

What can we expect from EUR today?

The Euro hovered above 1.0880 overnight and was edging higher towards 1.0890 at the beginning of the Asia session – these are the support and resistance levels for today.

Support: 1.0850

Resistance: 1.0950

Central Bank Notes:

• The Governing Council today decided to keep the three key ECB interest rates unchanged in July, following a 25 basis points cut in June.
• Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 4.25%, 4.50% and 3.75% respectively.
• Monetary policy is keeping financing conditions restrictive but at the same time, domestic price pressures are still high, services inflation is elevated and headline inflation is likely to remain above the target well into next year.
• While some measures of underlying inflation ticked up in May owing to one-off factors, most measures were either stable or edged down in June.
• The incoming information indicates that the euro area economy grew in the second quarter, but likely at a slower pace than in the first quarter.
• Services continue to lead the recovery, while industrial production and goods exports have been weak – investment indicators point to muted growth in 2024, amid heightened uncertainty.
• The Eurosystem no longer reinvests all of the principal payments from maturing securities purchased under the pandemic emergency purchase programme (PEPP), reducing the PEPP portfolio by €7.5 billion per month on average and the Governing Council intends to discontinue reinvestments under the PEPP at the end of 2024.
• The Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner and will keep policy rates sufficiently restrictive for as long as necessary to achieve this aim and is not pre-committing to a particular rate path.
• Next meeting is on 12 September 2024.

Next 24 Hours Bias

Weak Bearish

The Swiss Franc (CHF)

Key news events today

No major news events.

What can we expect from CHF today?

The franc remained weak as USD/CHF climbed higher towards 0.8900. This currency pair was trading around 0.8895 as Asian markets came online – these are the support and resistance levels for today.

Support: 0.8820

Resistance: 0.8900

Central Bank Notes:

• The SNB eased monetary policy by lowering its key policy rate by 25 basis points for the second consecutive meeting, going from 1.50% to 1.25% in June.
• The underlying inflationary pressure has decreased again compared to the previous quarter but inflation had risen slightly since the last monetary policy assessment, and stood at 1.4% in May.
• The inflation forecast puts average annual inflation at 1.3% for 2024, 1.1% for 2025 and 1.0% for 2026, based on the assumption that the SNB policy rate is 1.25% over the entire forecast horizon.
• Swiss GDP growth was moderate in the first quarter of 2024 with the services sector continuing to expand, while manufacturing stagnated.
• Growth is likely to remain moderate in Switzerland in the coming quarters as the SNB anticipates GDP growth of around 1% this year while currently expecting growth of around 1.5% for 2025.
• Next meeting is on 26 September 2024.

Next 24 Hours Bias

Weak Bullish

The Pound (GBP)

Key news events today

No major news events.

What can we expect from GBP today?

Cable was relatively unchanged as it hovered above 1.2900 overnight. This currency pair was drifting higher towards 1.2930 at the beginning of the Asia session – these are the support and resistance levels for today.

Support: 1.2860

Resistance: 1.3000

Central Bank Notes:

• The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 7-to-2 to maintain its Official Bank Rate at 5.25% for the seventh consecutive meeting.
• Two members preferred to reduce the Bank Rate by 25 basis points to 5%, an increase of one from the previous meeting.
• Twelve-month CPI inflation fell to 2.0% in May from 3.2% in March, close to the May Monetary Policy Report projection. CPI inflation is expected to rise slightly in the second half of this year, as declines in energy prices last year fall out of the annual comparison.
• Reflecting a margin of slack in the economy, CPI inflation had been projected to be 1.9% in two years’ time and 1.6% in three years.
• UK GDP appears to have grown more strongly than expected during the first half of this year. Business surveys, however, remain consistent with a slower pace of underlying growth, of around 0.25% per quarter.
• UK real GDP had increased by 0.6% in 2024 Q1, 0.2% stronger than had been expected in the May Monetary Policy Report and Bank staff now expect GDP growth of 0.5% in 2024 Q2 as a whole, stronger than the 0.2% rate that had been incorporated in the May Report.
• The MPC remains prepared to adjust monetary policy as warranted by economic data to return inflation to the 2% target sustainably. It will therefore continue to monitor closely indications of persistent inflationary pressures and resilience in the economy as a whole, including a range of measures of the underlying tightness of labour market conditions, wage growth and services price inflation.
• Next meeting is on 1 August 2024.

Next 24 Hours Bias

Weak Bearish

The Canadian Dollar (CAD)

Key news events today

No major news events.

What can we expect from CAD today?

Weakness in the Loonie drove USD/CAD above 1.3750 overnight. This currency pair remained elevated to hover around 1.3760 as Asian markets came online – these are the support and resistance levels for today.

Support: 1.3720

Resistance: 1.3780

Central Bank Notes:

• The Bank of Canada reduced its target for the overnight rate by 25 basis points to 4.75% while continuing its policy of balance sheet normalization.
• Canada’s economic growth resumed in the first quarter of 2024 after stalling in the second half of last year. At 1.7%, first-quarter GDP growth was slower than forecast in the MPR but consumption growth was solid at about 3%, and business investment and housing activity also increased.
• Inflation remains above the 2% target and shelter price inflation is high but total CPI inflation has declined consistently over the course of this year, and indicators of underlying inflation increasingly point to a sustained easing.
• CPI inflation has eased from 3.4% in December to 2.7% in April while the preferred measures of core inflation have come down from about 3.5% last December to about 2.75% in April and the 3-month rate of core inflation slowed from about 3.5% in December to under 2% in March and April.
• In the labour market, businesses are continuing to hire workers as employment has been growing, but at a slower pace than the working-age population while elevated wage pressures look to be moderating gradually.
• The Governing Council is closely watching the evolution of core inflation and remains particularly focused on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour.
• Recent data has increased the council’s confidence that inflation will continue to move towards the 2% target. Nonetheless, risks to the inflation outlook remain.
• Next meeting is on 24 July 2024.

Next 24 Hours Bias

Medium Bullish

Oil

Key news events today

API Crude Oil Stock (8:30 pm GMT)

What can we expect from Oil today?

Oil prices resumed their downward slide that began last Thursday as WTI oil fell 1% overnight, tumbling towards $79 per barrel. The prospect of swelling oil supplies and weak demand has increased the overhead pressures on this commodity in recent weeks. Looking at U.S. inventory levels, the API stockpile has reduced strongly over the past three weeks to signal higher demand for crude oil stateside. With the latest forecast pointing to another decline of 2.5M barrels, a fourth consecutive week of higher drawdowns could potentially aid oil prices in finding a floor this week.

Next 24 Hours Bias

Medium Bearish

The post IC Markets Europe Fundamental Forecast | 23 July 2024 first appeared on IC Markets | Official Blog.

US Markets Power Higher – Nasdaq up 1.6%

US stock markets shrugged off political concerns in light of the change of democratic presidential candidate yesterday to focus on another potentially strong earnings season. The Nasdaq led the way north, adding 1.58% followed by the S&P and Dow which closed up 1.08% and 0.32% respectively as investors looked ahead to today’s key reports from Tesla and Alphabet. Other markets were more subdued, US treasury yields ground higher, the 2-year adding 1.6 basis points to trade up to 4.523% and the 10-year gaining 2.1 basis points to 4.260%. Asian FX saw a bit of movement after China cut key rates by 0.1%, with the Cny and Aud losing ground, however the dollar overall was little changed on the day, dropping just 0.1% on the index. Oil prices drifted lower again, Brent off 0.3% to $82.40 a barrel and WTI down 0.41% to $79.78 a barrel. Gold eventually closed lower as well, dropping 0.2% to $2,394, despite and initial spike on the Asian open after the Joe Biden update.

Aussie Dollar in Focus for FX Traders Today

It turned out to be a relatively quiet day for FX traders yesterday who had started the trading sessions on their toes expecting to see some volatility on the back of Joe Biden dropping out of the US presidential race. However, this was expected by a large chunk of the market and the Asian open was relatively benign. The big mover on the day however was the Aussie dollar which dropped again back into familiar ranges as commodities continued to drop and perhaps more crucially, China cut key rates. The Aussie experienced its biggest depreciation since June 7, losing 0.8% on the day and is now over 2.5% off recent highs and traders are expecting more moves in the sessions ahead. The pair is now sitting bang in the middle of recent ranges on the Daily chart with long-term support coming in around 0.6420 and resistance back up on the yearly high just under 68 cents.

Investors Eye Earnings Reports in Trading Day Ahead

Markets experienced a quieter day than some had envisaged yesterday as they largely took political updates out of the US in their stride. Asian markets are set to open on the front foot after a strong performance on Wall Street and they continue to react to yesterday’s stimulus out of China and there is little of note on the event calendar to disrupt that sentiment. The European session is also set to be quiet in terms of data releases, however things could get interesting once New York enters the fray. We have the first set of US data releases due out for the week in the form of the Existing Home Sales numbers as well as the Richmond Manufacturing Index data, but the real focus for investors will come from the latest earnings updates from ‘Magnificent Seven’ members Tesla and Alphabet later in the day.

The post General Market Analysis 23/07/2024 first appeared on IC Markets | Official Blog.

The retreat comes again as we get to the handover from Asia to Europe, somewhat similar to yesterday. Sellers are staying interested with price action keeping below the broken trendline support (white line) as seen below:

The 100-day moving average (red line) at 155.31 currently will be a key downside target to watch.

Looking at the near-term chart, we can see how sellers are also dictating the state of play at the moment:

The bounce last week was thwarted by sellers leaning on the broken trendline support, now acting as a key resistance line. After, they have been holding price action just below the 100-hour moving average (red line). And that suggests a more bearish near-term bias in the pair, at least for now.

The low last week at 155.50 will be the next layer to chew through before getting to the 100-day moving average as noted above.

There’s not much of a catalyst driving the move lower in USD/JPY to start the new week. Treasury yields were down slightly yesterday but recovered to push higher, though 10-year yields are back down by 2.3 bps to 4.236% now.

It looks to be just some yen buying flows as dip buyers have lost some of their luster after the recent Japan intervention.

This article was written by Justin Low at www.forexlive.com.

It hasn’t been a quiet summer for markets so far but the start of this week sort of embodies the typical summer lull that we have been accustomed to over the years. And we have an empty calendar day, more or less, to thank for that. Similar to yesterday, there won’t be any major releases of note in European trading.

And that will likely make for a slower session overall in the day ahead.

Equities were a big mover in Wall Street yesterday, with tech shares bouncing back after the poor run in the second half of last week. But we do have key earnings releases from Alphabet and Tesla after the close today. So, just be wary of that.

Besides that, the shove lower in USD/JPY yesterday is still largely holding while the antipodeans remain on the softer side amid a weaker yuan this week. Other major currencies aren’t offering too much so far but things should pick up in the days ahead at least.

PMI data will come into focus tomorrow alongside the BOC policy decision, before we move on to US Q2 GDP and weekly jobless claims on Thursday. We’ll then round things off with the US PCE price index on Friday.

This article was written by Justin Low at www.forexlive.com.