Published at 02:56 (GMT) 3 Aug
Start of new month; August today. Relatively quiet markets, after the choppy Friday sessions. Where USD slumped as markets took the weak +0.2% q/q Q2 Employment Cost Index for US, lowest in 33-years as "confirmation" that Fed will not hike on Sep 16-17. Though USD as recovered most of the losses.
Focus on Friday's US NFP for more "concrete" clues. USD/JPY back up at 124.02-05, offers at 124.50-60. BoJ Kuroda REER JPY is weak levels on Jun 10. Now a natural and psychological resistance. As USD/JPY slumped 2 Yen from 124.50-60 to 122.40-50 on Jun 10.
EUR/JPY at 136.06-10, offers at 136.50/137.00. From Japanese exporters, banks on rallies. Given ongoing focus on Eurozone news, especially Greece.
Focus on China stock markets today, after China Manufacturing PMI of 50.0. For any further downside pressure on Shanghai index. Also rumours of PBoC/ CSRC/ CBRC / NDRC. Shanghai index closed on Friday at 3,663.7256. Support at 3,500/3,300 and the year lows of 3.049.111 seen on 9 Feb. Before series of PBoC easing, rally to Jun 12 pea, of 5.178.191. Good to watch.
Nikkei -0.42%, or -86.50 at 20.498.74.
Cross/JPY vulnerable to downside on any risk aversion.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.