USD/JPY was the mover amongst a lacklustre bunch here during the timezone. From lows under 133.00 USD/JPY has traded to highs towards 133.50. The only
USD/JPY
was the mover amongst a lacklustre bunch here during the timezone.
From lows under 133.00 USD/JPY has traded to highs towards 133.50.
The only news item of note was confusing, that Japanese Prime
Minister Kishida is planning to convene a meeting to address rising
prices, wages. His monetary policy arm. The Bank of Japan, have spent
over a decade trying to fuel just these, and everything we have heard
publicly from Kishida and his government indicates support for the
BOJ continuing to do just that. The meeting is planned for August 15,
stay tuned.
The
USD has generally ticked higher across major FX. EUR, GBP, AUD are
all a touch lower on the session. NZD and CAD have held in. The moves
have been tiny only.
Data
flow was lower tier only.
From
the Federal Reserve, Bloomberg TV had an interview with Mary Daly,
President and Chief Executive Officer of the Bank’s San Francisco
branch. Daly spoke at length (see bullets above). At the next meeting
her base case is for a +50bp rate hike from the Federal Open Market
Committee (FOMC), but she is open to +75 should the data indicate
that’s necessary. She also reiterated she sees higher rates into
year-end and then again into 2023. If you are looking for a label for
the speech, hawkish would be the safe one.
Global
politics took centre stage. The Washington Post reported that
classified documents relating to nuclear weapons were among the items
FBI agents sought in a search of former president Donald Trump’s
Florida residence on Monday. WaPo cited unidentified sources. Its
expected that US courts will soon order search warrants to be
unsealed and an itemized list of confiscated material will be
published, so we’ll soon find out.
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