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Japanese Yen: Joint intervention supports yen outlook – MUFG
MUFG’s Lee Hardman notes that the Japanese Yen has strengthened as Japan and the US conducted joint intervention to counter recent volatility. He highlights planned use of the Federal Reserve’s FIMA Repo Facility, US euro-to-yen reallocations, and Japan’s sizeable FX reserves.
Australian Dollar comes under pressure as US Dollar regains ground
AUD/USD falls to around 0.7000 on Monday at the time of writing, down 0.30% on the day, as a rebound in the US Dollar (USD) outweighs the support provided by Chinese economic data for the Australian Dollar (AUD).
Federal Reserve: Data driven rate path – HSBC
HSBC strategists note that the Federal Reserve (Fed) left policy rates unchanged in July, with markets now assigning a two-thirds probability to a September hike.
Fed’s Williams: Affirms confidence for inflation to return to 2% target
The remarks from New York Federal Reserve (Fed) Bank President John Williams, in an interview with Reuters that took place on Friday and was released during the European trading session on Monday, signal that he was confident about inflation returning to the central bank’s 2% target.
New Zealand Dollar eases as markets focus on US-Iran talks
NZD/USD trades around 0.5870 on Monday at the time of writing, down 0.11% on the day.
Breaking: US ISM Manufacturing PMI rises to 55.6 in July vs. 54 expected
Business activity in the US manufacturing sector expanded at an accelerating pace in July, with the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) rising to 55.6 from 53.3 in June. This reading came in better than the market expectation of 54.
Euro area: Services PMI and inflation risks – BNY
Geoff Yu at BNY argues that the lack of further Fed tightening has eased global financial conditions and partially offset European Central Bank (ECB) tightening, but European inflation dynamics remain distinct from the U.S.
British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data
The British Pound (GBP) is trimming previous gains against the US Dollar (USD) on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day.
Swiss Franc weakens following soft inflation, manufacturing data
USD/CHF extends its gains for the second successive day, trading around 0.8090 during the European hours on Monday. The pair remains on a stronger footing as the Swiss Franc (CHF) holds onto losses following the release of soft domestic inflation and manufacturing data.
Japanese Yen: Intervention fears cap losses against US Dollar – Rabobank
Rabobank's Senior FX Strategist Jane Foley discusses recent joint intervention by Japan’s Ministry of Finance (MoF) and the United States (US) Treasury to support the Japanese Yen (JPY) and its implications for USD/JPY.
AUD/JPY Price Forecast: Defends 200-day SMA below mid-109.00s after range breakdown
The AUD/JPY cross attracts heavy follow-through selling and touches its lowest level since late March, around the 109.40-109.35 region at the start of a new week.
Euro strengthens against Canadian Dollar despite mixed German data
EUR/CAD edges lower after opening with a bullish gap, remaining in the positive territory and trading around 1.6180 during the European hours on Monday. The currency cross is holding its ground as the Euro (EUR) remains resilient despite mixed economic data from Germany.
Swiss Franc: inflation undershoots SNB outlook – Nomura
Nomura strategists note that Swiss Consumer Price Index (CPI) slowed to 0.4% year-on-year in July, helped by weaker car fuel prices and easing imported energy costs.