Single Currency In Focus, Greenback and Japanese Yen Reinforce

Market Reviews

Investors are focused on the EUR/USD dynamic. The pair broke 1.5 support level. Aussie broadly weakened. Meanwhile, the greenback and Yen were both boosted. DOW dropped -0.29%. S&P 500 reduced -0.14%. NASDAQ rose 0.04%. 10 year yield lowered -0.036 at 2.935. Nikkei declined -0.68%. China Shanghai SSE fell -0.33%. Hong Kong HSI was down -0.57%. Singapore Strait Times dropped -1.25%.

After their yesterday’s meeting, top trade officials of the US and Japan reached mutual understanding and Japan maintained its stance of refraining from a bilateral free-trade agreement. After talking to the US Trade Representative Robert Lighthizer, Japanese Economy Minister Toshimitsu Motegi stated: "We had a frank exchange of views and deepened mutual understanding".

Robert Lighthizer’s cabinet informed: "Ambassador Lighthizer and Minister Motegi had a thorough and constructive exchange of views on all bilateral trade issues," and: "They understand each other’s conditions for further discussions and plan to move forward with additional talks."

The two economies agreed to aspire to quicker results. But, no broader indications were given by the officials after the first day of negotiation. So, we’ll probably have to wait until its end.

The Swiss government stated that it recommends business to keep working on creating trade ties regardless US tariffs. Fabian Maienfisch of the State Secretariat for Economic Affairs claimed: “U.S. decisions on sanctions do not affect the legal situation in Switzerland with regard to Iran,” adding: “Switzerland regrets that the sanctions situation in relation to Iran is again deteriorating.” Thus, the government: “recommends that companies pursue their commercial relations with Iran and inform themselves about the situation”.

Japan economy increased 0.5% qoq, 1.9% annualized in the second quarter. GDP deflator grew 0.1% yoy. Private consumption was up 0.7%. Capital expenditure surged 1.3%, marking a 1.5-year maximum. Domestic CGPI rose 3.1% yoy in July. Tertiary industry index fell -0.5% mom in June. New Zealand BusinessNZ manufacturing PMI dropped to 51.2 in July, down from 52.8.

Today, Britain will release Gross Domestic Product of the second quarter, productions and trade balance data. Canada will feature job data and US will publish Consumer Price Index.