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Forex Today: Yen sold-off post-BOJ Kuroda, EZ Sentix, US LMCI eyed

Forex today kicked-off the week on quieter note, although amid a better risk environment induced by the oil-price recovery, which triggered a risk-on rally in the Asian equities. More so, in-line with expectations Chinese inflation data also buoyed the sentiment, boosting the demand for the higher-yielding currencies AUD and NZD.

Meanwhile, the Japanese currency emerged the biggest loser after the BOJ Governor Kuroda noted that the central bank is ready to adjust policy whenever necessary. Also, downward revision to the Japanese machinery orders by the Govt also added to the losses in the domestic currency.

Looking ahead, we have a quiet start to the week ahead in terms of the economic news from the EUR and US docket, with the Eurozone Sentix Investor Confidence data and US Labour market condition index (LMCI) slated for release later today.

Main topics in Asia

G-20 2017: Australia to be exempt from US tariff on steel exports

According to The Australian, Australia has secured a crucial exemption for steel exports as the US considers imposing an anti-dumping trade wall on imports following a flood of cheap steel onto the global market. 

EU, Canada agree to begin free trade agreement on Sept 21st

The European Union and Canada will begin a free trade agreement on September 21st, as part of a Comprehensive Economic and Trade Agreement (CETA) framework. 

Chinese June inflation y/y in line with exp, monthly reading a slight miss

China CPI for the month of June came at 1.5% y/y, which is in line with Reuters' 1.5% expectations, while the m/m data came at -0.2% vs -0.1% expected. 

Japanese government cut its assessment of machinery orders for the first time in eight months

Reuters report says, "The Japanese government cut its assessment of machinery orders for the first time in eight months, saying they are stalling in a worrying sign businesses may be turning cautious on investing". 

BOJ's Kuroda - Will run yield curve control policy for as long as needed

Bank of Japan (BOJ) Governor Kuroda, while speaking at a branch manager's meeting today, said the central bank will run QQE with yield curve control for as long as needed to achieve the 2% inflation target. 

Key Focus ahead

The week ahead in Europe: Light agenda, UK jobs focal point - Nomura

Both the UK and Europe see a light economic agenda for the week ahead, with the UK labour market report and Euro area industrial production the main focus, notes the Economics Team at Nomura. 

The week ahead in the US: Retail sales and inflation main focus - Nomura

The key data out of the US this week will be concentrated on Friday, with the release of retail sales, CPI and industrial production

EU Parliament may veto UK citizen's rights offer - Telegraph

The Telegraph reports that the European Parliament has threatened to veto Theresa May's offer on EU citizens' rights, branding it a "damp squib" which risks creating a "second class of citizenship."

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Jul 10
08:30
 
28.4
28.4
14:00
 
2.5
2.3
15:30
 
 
1.045%
15:30
 
 
1.13%
19:00
 
$12.7B
$8.2B
23:01
 
0.5%
-0.4%
Tuesday, Jul 11
10:00
 
 
104.5
10:00
 
 
12:30
 
0.3%
0.3%
12:55
 
 
0.7%
12:55
 
 
2.7%
14:00
 
 
6.044M
15:30
 
 
0.95%
16:00
 
 
17:00
 
 
1.5%
20:30
 
 
-5.76M
Wednesday, Jul 12
08:30
 
 
2.3%
08:30
 
4.6%
4.6%
08:30
 
 
7.3K
08:30
 
1.9%
1.7%
08:30
 
1.9%
2.1%
10:00
 
2.7%
1.4%
10:00
 
0.3%
0.5%
11:00
 
 
1.4%
14:30
 
 
-6.299M

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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