Headlines:
- USD/JPY slowly testing the waters above the 160.00 mark
- USDJPY Technical Analysis – The market is testing the intervention level again
- Is a rate hike back on the menu for the RBA?
- Equities see early gains fade as the push and pull continues
- ECB's Panetta says should avoid even "casual forward guidance" on timing of rate moves
- ECB's Rehn: I always knew inflation path would be a bumpy road
- Germany July GfK consumer sentiment -21.8 vs -18.9 expected
- France June consumer confidence 89 vs 89 expected
- UK June CBI retailing reported sales -24 vs 8 prior
- Switzerland June UBS investor sentiment 17.5 vs 18.2 prior
- US MBA mortgage applications w.e. 21 June +0.8% vs +0.9% prior
Markets:
- AUD leads, NZD lags on the day
- European equities lower; S&P 500 futures down 0.1%
- US 10-year yields up 4.9 bps to 4.286%
- Gold down 0.3% to $2,310.84
- WTI crude up 0.7% to $81.38
- Bitcoin down 0.9% to $61,329
There were some decent moves in European morning trade today, with the dollar holding firmer across the board helped out by higher bond yields. That saw USD/JPY move up to clip the 160.00 mark once again and is now testing waters above that on the day. The high for the day is at 160.40, matching up to the 1990 high.
I wouldn't underestimate the upside potential of the pair considering that it is clear skies in terms of the technicals. But it's all a psychological game now and if buyers push it too far, too fast, Tokyo will be ready to step in again.
With equities also surrendering early gains and yields nudging higher, that is keeping the dollar underpinned on the day.
EUR/USD is down 0.3% from 1.0710 to 1.0680 while GBP/USD eased from 0.3% from 1.2680 to 1.2645 on the session. Meanwhile, USD/CAD is up 0.2% to 1.3690 and NZD/USD down 0.4% to 0.6095 on the day.
The aussie is the one leading gains though after hotter inflation numbers earlier. But AUD/USD has eased from 0.6680 to 0.6650 levels now, though still up 0.2% on the day.
As a reminder, month-end and quarter-end is approaching so that will be a factor for consideration in the sessions ahead as well.
