Japanese Yen Weakened, Bank of Japan Disappointed

Market Reviews

Japanese Yen declined as Bank of Japan stated it would reinforce the framework for its long-established powerful easing and the target for 10 year JGB yields won’t be raised. Interest rates will stay extremely low for a long time. 10 year JGB yields fell to break 0.07. Nikkei rose 0.13%. Meanwhile, Loonie has broadly weakened as Canada got excluded from the US-Mexico NAFTA negotiation. Euro and Swiss Franc are both soft.

Japanese unemployment rate was up 0.2% to 2.4% in June. Industrial production reduced -2.1% mom. Housing starts were down -7.1% yoy. Consumer confidence declined -0.2 to 43.5 in July. The official China PMI manufacturing fell -0.3 to 51.2 in July. Official PMI services lowered -1.0 to 54.0. New Zealand ANZ business confidence index dropped 5 points to the 10-year minimum of -45 in July. Own activity index was down -5 points to the 9-year minimum of 4. New Zealand building permits declined -7.6% mom in June. Australian building approvals grew 6.4% mom.

Today, Eurozone will release Gross Domestic Product and Consumer Price Index for the second quarter. Additionally, we’ll get jobless rate data. Germany will announce retail sales and unemployment numbers. Canada will feature GDP, IPPI and RMPI. US will present personal income and spending, employment cost index, S&P Case-Shiller house price, Chicago PMI and consumer confidence.