Global Markets:

  • Japan (JPY) BoJ Interest Rate Decision: 0.1%, Expected: 0.1%, Previous: 0.1%
  • Japan (JPY) BoJ 2014 Monetary Base Target (JUN  13): JPY270T, Expected: JPY270T, Previous: JPY270T
  • New Zealand (NZD) FPI (m/m): 0.6%, Previous: 0.6%
  • New Zealand (NZD) Business NZ PMI: 52.7, Previous: 55.2
  • Bank of Japan leaves monetary policy unchanged, aiming for Y60-70tn annual increase in monetary base
  • BOJ: Japan’s economy has continued to recover moderately, easing will continue until 2% inflation is stable
  • BOJ: CPI likely to be about 1.25% for some time but the Bank will examine risks and make policy adjustments as necessary
  • Asia stock markets: Nikkei is up 0.50 %, Shanghai Composite and Hang Seng both gained 0.90 %, ASX fell 0.50 %
  • Commodities: Gold at $1273, Silver at $19.53, Crude Oil at $107.04
  • Bonds: US 10 year yield at 2.602

FX Update:

  • EUR – Buying from a Asian sovereign name and short covering in EUR/JPY lifted the EUR/USD to a high of 1.3565. Better selling interest towards 1.36 with stops from short-term names resting just above.
  • GBP – Comments from Bank of England Governor Carney led to a large rally in GBP/USD, taking the pair to 1.6971. Good selling also in EUR/GBP with the 0.80 barrier cleared + stops triggered. Some profit-taking offers expected ahead of 1.70, but a clear break above that level will attract fast money accounts and add to the momentum.
  • JPY – Japanese names were buyers of USD/JPY overnight, which led to a bounce to 101.93. Option traders note that there are large option expiries between 101.50 and 102.00 today, which might keep price within that range. No surprises from the Bank of Japan, as they kept policy unchanged. Traders are now waiting for the press conference from BoJ Governor Kuroda at 03:30 PM Tokyo time.

Upcoming Events:

  • 06:00 GMT – German CPI (-0.1 % MoM, 0.9 % YoY)
  • 07:00 GMT – Spanish CPI (0.2 % YoY)
  • 08:00 GMT – Italian CPI (-0.1 % MoM, 0.5 % YoY)
  • 09:00 GMT – Euro Zone Employment Change (0.1 % QoQ)
  • 12:30 GMT – Canadian Manufacturing Sales (0.9 % MoM)
  • 12:30 GMT – US PPI (0.1 % MoM, 2.4 % YoY)
  • 13:55 GMT – Michigan Consumer Snetiment (83.0)
  • 13:55 GMT – Michigan Consumer Expectations (74.6)