Forex Analysis
FI Eye-Opener: Dove hunting
Core bond yields climbed yesterday, more so in the US than in Germany. The German 10-year yield edged higher by less than a bp, while the US 10-year yield rose by around 3bp.
AUD/USD Analysis
Aussie witnessed a muted start this mornign as it opened at $0.9394, after a $0.9387 to $0.9403 range during the US hours.
Bank of Japan on hold and confident about economy’s strength
Bank of Japan (BoJ) as expected did not announce any new easing measures in connection with today’s monetary meeting.
EUR/USD Analysis
Another muted session for the euro after it opened at $1.3619 this morning, and following last night’s $1.3608 to $1.3631 US trading range.
GBP/USD Analysis
The pair closed in NY Monday at $1.7084 after sterling had come under pressure into the US session on reported position adjustment ahead of today’s key
USD/JPY Analysis
The pair opened at Y101.54 this morning, just off the overnight low of Y101.46, and edged higher in light, early dealings amid an improved risk environment.
RBA Board Minutes – July 2014
Today’s July RBA Board minutes can be combined with the Governor’s recent public statements to give a reasonably clearindication that the neutral monetary policy bias will be with us for a while.
Yen Softer Ahead of BOJ Decision, Market Seeks Clarity
The yen weakened modestly against the dollar and on the crosses Monday, ahead of Tuesday’s Bank of Japan monetary policy decision.
BoC Preview
We expect rates on hold (at 1.00%). We expect the MPR to revise up the inflation forecasts for both headline and core CPI,
BoJ Preview
We expect the BOJ to maintain its monetary policy (Monetary Base Target at ¥270T, same as consensus and previous).
EUR Mid-day Analysis
The Euro has been able to overcome a definitively discouraging Euro zone industrial output releaseperhaps because