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Euro flattens against Japanese Yen, ECB-BoJ to raise rates in September
The Euro (EUR) trades flat at around 183.85 against the Japanese Yen (JPY) during the European trading session on Friday. The cross consolidates while investors seek fresh cues regarding whether there will be more United States (US)-Japan joint intervention to prop up the Japanese currency.
Japanese Yen: Shifting rate expectations and currency support – Commerzbank
Commerzbank’s Volkmar Baur notes that Japanese government support for an imminent Bank of Japan rate hike has reinforced market expectations rather than surprised them. Probabilities now favor a hike as early as September, with October fully priced and another move in December possible.
China M2 Money Supply (YoY) registered at 7.7%, below expectations (7.9%) in July
China M2 Money Supply (YoY) registered at 7.7%, below expectations (7.9%) in July
China New Loans fell from previous 1610B to -340B in July
China New Loans fell from previous 1610B to -340B in July
Hong Kong SAR Gross Domestic Product (QoQ) in line with forecasts (-0.6%) in 2Q
Hong Kong SAR Gross Domestic Product (QoQ) in line with forecasts (-0.6%) in 2Q
Hong Kong SAR Gross Domestic Product (YoY) meets forecasts (4.3%) in 2Q
Hong Kong SAR Gross Domestic Product (YoY) meets forecasts (4.3%) in 2Q
Australian Dollar: Upside risk intact above support against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD is consolidating intraday between 0.7050 and 0.7075 after a brief spike to 0.7091 failed to build momentum.
Japanese Yen recovers from two-week low on fast BoJ rate hike bets, softer USD
The USD/JPY pair sticks to modest intraday losses through the first half of the European session on Friday, though it manages to hold above the 159.00 mark and remains close to a two-week top set the previous day.
Australian Dollar bounces up, US Dollar droops ahead of US Retail Sales data
The Australian Dollar (AUD) is trading a tad firmer against the Dollar (USD) on Friday, fuelled by hawkish remarks by Reserve Bank of Australia’s (RBA) Assistant Governor, Chris Kent.
Japanese Yen: BoJ tightening debate supports JPY – Rabobank
Rabobank strategist Elwin de Groot highlights that Japanese policymakers are increasingly focused on achieving the inflation target sustainably and supporting the Japanese Yen. Following recent FX intervention, He argues that exchange-rate management ultimately needs monetary policy backing.
Canadian Dollar hits fresh high since June on rising oil prices, Fed-inspired USD weakness
The USD/CAD pair extends the previous day's decline from the top end of the weekly range and attracts follow-through selling for the second straight day.
British Pound: Locked in tight ranges against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report GBP/USD price action remains confined, with intraday moves seen between 1.3475 and 1.3515 as momentum has faded.
Euro: Showing some undervaluation against US Dollar – ING
ING FX Strategist Francesco Pesole highlights that EUR/USD appears modestly undervalued, with short-term fair value estimated around 1.160–1.1650 based on swap spreads.