EURUSD R 2: 1.3101 R 1: 1.3033 CURRENT: 1.2908 S 1: 1.2844 S 2: 1.2745USDJPY R 2: 88.01 R 1: 87.58 CURRENT: 87.17 S 1: 86.60 S 2: 85.87
GBPUSD R 2: 1.5476 R 1: 1.5392 CURRENT: 1.5315 S 1: 1.5141 S 2: 1.5031
AUDUSD R 2: 0.8975 R 1: 0.8873 CURRENT: 0.8800 S 1: 0.8685 S 2: 0.8583
Asia hasn't been inspired this morning despite a strong close to the US trading session last night (the Dow closed +0.74%). Asian equities have failed to rally and despite technology shares trading higher (boosted in part by Apple's earnings), the larger Japanese export companies found their shares trading lower as a strong Japanese Yen weakened their future earnings expectations. The release of the BoJ minutes from their June 14-15 meeting showed that the quarterly demand for business loans matched a five year low (-17 in July v -10 in Jan). Deputy Governer Yamaguchi raised concerns about global uncertainties (European bank stress tests, growth story in the US) and faces a tough path to recovery; Japanese stocks have been slumping and the latest loan figures show that businesses in Japan are averse to reinvesting. Perhaps this can change with the release of the new lending scheme due by the end of August in an effort to reinvigorate growth in Japan.Commodity currencies AUDUSD & NZDUSD were marginally weaker against the Greenback and continue to take direct cues from the performance of the equity markets. With no major macroeconomic releases due from Asia, focus will shift to the UK and the release of the BoE meeting minutes.