Japan Tankan Large Manufacturing Index Q2: 6 (est. 4, prev. 6)
Japan Tankan Large Non-Manufacturing Index Q2: 19 (est. 19, prev. 22)
Japan Tankan Large All Industry Capex Q2: 6.2% (est. 5.30%, prev. -0.90%)
Japan Tankan Large manufacturers see USD/JPY at 111.41 in FY 2016
Australia AiG Manufacturing Index Jun: 51.8 (prev. 51)
PBOC sets USD/CNY mid-point at 6.6496 (prev. fix 6.6312, prev. close 6.6480)
S&P affirms United States of America at AA+/stable – BBG
Sterling pressured by dovish BOE, euro also shaky – RTRS
Japan June manufacturing activity shrinks for fourth month as orders tumble: PMI – RTRS
The Pound declined sharply yesterday after BoE Governor Carney signaled a rate cut this summer. GBP/USD fell from 1.3420 to a low of 1.3220, but bounced from there and closed in New York at 1.3305. In Asia, the pair managed to recover to 1.3350.
The Euro came under renewed pressure as well and declined from 1.1150 to 1.1020 yesterday. There, it found decent support and rallied to back to 1.11 into the NY close. In Asia, it traded within a 1.1090-1.1115 range, and flows were light.
Meanwhile, USD/JPY is still struggling to sustain gains above 103. It broke once again above the level in yesterday's late NY session, but fell below it as Tokyo opened. SUpport is seen at 102.80 and 102.20.