💱 Tokyo & London Market Summary: Directionless Trading, Focus Shifts to Powell’s Speech

💱 Tokyo & London Market Summary: Directionless Trading, Focus Shifts to Powell’s Speech

📌 Tokyo Session Highlights

• S&P affirmed U.S. sovereign credit rating at “stable” outlook → brief dollar buying, but gains faded.

• USD/JPY moved lower compared with the previous day, while EUR/USD and GBP/USD saw some short covering.

• Overall, markets transitioned into a range-bound, directionless phase.

🌍 Political & Geopolitical Risks

• Ukraine peace talks remain at an “entry stage”.

• Speculation of a Trump-aligned deal exists, but feasibility seen as 50/50.

• U.S. and Europe pushing forward with security assistance for Ukraine; EU and NATO maintain a hardline stance.

📊 Key Economic Data & Events Ahead

• U.S. Housing Starts: Forecast 1.297M (previous 1.321M)

• U.S. Building Permits: Forecast 1.386M (previous 1.393M)

• Canada CPI: Headline YoY +1.8% expected; Median & Trimmed Core +3.1%

• Speeches: Fed Vice Chair Bowman

• Earnings: Home Depot, Medtronic

💹 London Session Early Moves

• EUR/USD climbed to 1.1692

• GBP/USD rose to 1.3531

• U.S. 10-year Treasury yields eased from 4.34% to 4.33%, fueling dollar selling pressure

• Home Depot earnings: Same-store sales missed estimates → U.S. equity futures weakened

📈 Indicative Ranges by Currency Pair

✅ Wrap-Up

• S&P’s U.S. rating affirmation was only a short-lived factor; FX markets remain directionless.

• Tonight’s focus: U.S. housing data, Canada CPI, and Fed Vice Chair Bowman’s remarks.

• Main event of the week: Jackson Hole Symposium & Powell’s speech on Aug 22.

• Until then, markets likely to remain range-bound with only temporary reactions.