FX Highlights

  • USD and JPY trade lower as equity markets rise, JPY pressured by threat of intervention, GBP supported by report of improving house prices and rising retail sales, GBP gains limited by report that UK inflation has dropped below the BOE's target, EUR gains limited by report of weaker than expected German Zew economic sentiment index and selling in cross trade to the GBP, AUD supported by report of improving business conditions and stronger Asian equity market trade, focus turns to today's US earnings reports, retail sales and PPI, Goldman Sachs and Johnson & Johnson earnings will be released today
  • UK June RICS house price balance improves to -18.1% from -43.8 in May, June BRC retail sales rise 1.4%, June CPI rises 0.3%, May house prices fall 12.5% y/y, GBP higher
  • Australia's June NAB business conditions rises 12 points to -2, business confidence index rises 6 points to 4, AUD higher
  • EU May industrial output rises 0.5%, German July Zew economic sentiment falls to 39.5 from 44.8 last month, current conditions index falls to -89.3 from 89.7, EUR lower as EU economic data disappoints
  • Japan's Finance Minister Yasano urges the Bank of Japan to continue its asset purchase plan, Japan's Cabinet Secretary Kawamura says excessive currency movements are undesirable, JPY lower as equity markets rise
  • Canadian May quarterly central bank survey shows improved business optimism, CAD higher
  • US Treasury Department reports a record 94.3 bln deficit in June
  • Treasury Secretary Geithner says US committed to reducing fiscal deficits, says confidence is returning to the global economy, recession is easing, must continue recovery efforts, supports strong USD
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 211 points higher

Upcoming Events

  • US- Tuesday, June retail sales will be released expected at 0.4% compared to 0.5%, and 0.5% ex. autos along with June PPI expected flat compared to 0.2% last month, May business inventories will also be released expected at -0.8% compared to -1.1% last month