15 Jul 2015
Eventless BOJ keeps Yen steady, UK Jobs, Greece, Fed Yellen – In focus
FXStreet (Barcelona) - FXStreet (Mumbai) - Bank of Japan (BOJ) sitting tight with its monetary policy decision for yet another time had no impact whatsoever on the Japanese currency, keeping USD/JPY frozen just below 120.50 levels. The Aussie remained boosted following a slew of upbeat Chinese macro data while NZD/USD was largely subdued awaiting fresh cues from today’s price auction and key CPI figures due later this week.
Key headlines in Asia
BOJ keeps policy steady, Kuroda press conference eyed
China's GDP Q2 beats estimates
China's National Statistics Bureau: Comments on China's upbeat Q2 GDP
IMF signals may walk away from Greece deal - FT
Dominating themes in Asia - centered on JPY, AUD, NZD
A busy Asian session, with favorable data from the world’s second largest economy lifted sentiment across the board. Among the Fx space, the biggest beneficiary of the better than estimates China data flow was the Australian dollar which finally headed towards 0.75 barrier versus its American counterpart. While the kiwi remained unaffected by China figures as traders await tonight’s GDT price index and NZ CPI figures due tomorrow for fresh cues on RBNZ policy stance.
In the June quarter China's economy expanded an annualized 7.0%. Markets expected GDP growth to record a 6.8% reading in the June quarter. Industrial Production in China (YoY) came in at 6.8%, above expectations (6%) in June, while the NBS also reported a 10.6% year-on-year rise in retail sales in June, beating the forecast rise of 10.2%.
While the USD/JPY pair was stuck around 123.45 as markets were left unimpressed as BOJ’s made no changes to its current policy settings on Wednesday, as widely anticipated and echoed the same old tune that economy is recovery at moderate pace and the QQE is having its intended effects and so on. EUR/USD hovered around 1.1000 – key levels with Greek vote and upcoming Euro group meeting in focus.
Most Asian markets are trading in green, with China ditching its Asian counterparts. The Shanghai composite index now trades -2.40% lower at 3830. The Nikkei 225 in Tokyo advances 0.38%, while Australian benchmark the ASX 200 trades 1% higher. While South Korea’s Kospi trades +0.53%.
Heading into Europe - centered on EUR, GBP
Looking ahead, markets will closely watch UK employment data due later in the European session while all eyes will remain on Greece and Euro group.
Markets expect the underlying measure of weekly average earnings excluding bonuses to have picked up to 3% in the quarter to May, which would be up from a six-year high of 2.7% recorded in April. The jobless rate is seen unchanged at 5.5% as jobless claims, a narrower gauge tracking labor market activity, is expected to have declined by only 9,000, compared to 6,500 people a month before, and significantly down from let's say 39,400 claimants in January this year, leaving the claimant-count rate unchanged at 2.3%.
On Greece front, markets are likely to remain glued to Greece development, awaiting Greek parliament vote on the deal later today. Market expressed their doubts the country's parliament will pass reforms demanded by creditors.
Markets are speculating that the nation is facing a political crisis that may lead to another snap election as the popularity of Syriza's leader Alexis Tsipras has been waning as he agreed to adopt tough measures in exchange for receiving a third bailout package, despite having promised to end the austerity.
We have an action-packed North American session later today, with Bank of Canada’s (BOC) monetary policy statement and Fed Chair Yellen’s testimony expected to be the main market moving events. Fed Chair Yellen is due to testify at the central bank's Semi-annual Monetary Policy Report after she said on Friday the central bank is aiming to lift rates sometime this year. While a raft of US data flow will also be closely watched.
Key headlines in Asia
BOJ keeps policy steady, Kuroda press conference eyed
China's GDP Q2 beats estimates
China's National Statistics Bureau: Comments on China's upbeat Q2 GDP
IMF signals may walk away from Greece deal - FT
Dominating themes in Asia - centered on JPY, AUD, NZD
A busy Asian session, with favorable data from the world’s second largest economy lifted sentiment across the board. Among the Fx space, the biggest beneficiary of the better than estimates China data flow was the Australian dollar which finally headed towards 0.75 barrier versus its American counterpart. While the kiwi remained unaffected by China figures as traders await tonight’s GDT price index and NZ CPI figures due tomorrow for fresh cues on RBNZ policy stance.
In the June quarter China's economy expanded an annualized 7.0%. Markets expected GDP growth to record a 6.8% reading in the June quarter. Industrial Production in China (YoY) came in at 6.8%, above expectations (6%) in June, while the NBS also reported a 10.6% year-on-year rise in retail sales in June, beating the forecast rise of 10.2%.
While the USD/JPY pair was stuck around 123.45 as markets were left unimpressed as BOJ’s made no changes to its current policy settings on Wednesday, as widely anticipated and echoed the same old tune that economy is recovery at moderate pace and the QQE is having its intended effects and so on. EUR/USD hovered around 1.1000 – key levels with Greek vote and upcoming Euro group meeting in focus.
Most Asian markets are trading in green, with China ditching its Asian counterparts. The Shanghai composite index now trades -2.40% lower at 3830. The Nikkei 225 in Tokyo advances 0.38%, while Australian benchmark the ASX 200 trades 1% higher. While South Korea’s Kospi trades +0.53%.
Heading into Europe - centered on EUR, GBP
Looking ahead, markets will closely watch UK employment data due later in the European session while all eyes will remain on Greece and Euro group.
Markets expect the underlying measure of weekly average earnings excluding bonuses to have picked up to 3% in the quarter to May, which would be up from a six-year high of 2.7% recorded in April. The jobless rate is seen unchanged at 5.5% as jobless claims, a narrower gauge tracking labor market activity, is expected to have declined by only 9,000, compared to 6,500 people a month before, and significantly down from let's say 39,400 claimants in January this year, leaving the claimant-count rate unchanged at 2.3%.
On Greece front, markets are likely to remain glued to Greece development, awaiting Greek parliament vote on the deal later today. Market expressed their doubts the country's parliament will pass reforms demanded by creditors.
Markets are speculating that the nation is facing a political crisis that may lead to another snap election as the popularity of Syriza's leader Alexis Tsipras has been waning as he agreed to adopt tough measures in exchange for receiving a third bailout package, despite having promised to end the austerity.
We have an action-packed North American session later today, with Bank of Canada’s (BOC) monetary policy statement and Fed Chair Yellen’s testimony expected to be the main market moving events. Fed Chair Yellen is due to testify at the central bank's Semi-annual Monetary Policy Report after she said on Friday the central bank is aiming to lift rates sometime this year. While a raft of US data flow will also be closely watched.