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."
