Headlines:
- Welcome to Fed day
- Eurozone June M3 money supply +0.6% vs +1.0% y/y expected
- France July consumer confidence 85 vs 86 expected
- Switzerland July Credit Suisse investor sentiment -32.6 vs -30.8 prior
- Japan official citing BOJ's Ueda says long-term yields remain stable under YCC
- Japan keeps overall view on the economy in July
- NAB now sees no RBA rate hike in August
Markets:
- JPY leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.1%
- US 10-year yields down 2.5 bps to 3.886%
- Gold up 0.4% to $1,972.53
- WTI crude down 1.0% to $78.80
- Bitcoin down 0.1% to $29,202
It was a quiet session for the most part but there were some decent moves in the market as we await the Fed policy decision later this week.
The dollar is keeping more mixed but slightly lower on the balance of things while European equities are seeing a minor selloff, led by French stocks after LVMH earnings weigh on luxury stocks.
USD/JPY held higher in Asia near 141.00 but is dragged lower to 140.20 currently, as we see some positioning flows come in with both the Fed and BOJ in play this week. Of note, there was a FT report late yesterday suggesting a potential BOJ surprise tweak so perhaps traders are reacting to that.
Besides that, the euro and pound are just mildly higher against the dollar while the commodity currencies are lagging. USD/CAD is up 0.3% to just above 1.3200 as oil prices are lower. Meanwhile, AUD/USD is down 0.6% to 0.6750 after a softer CPI report earlier in the day.
There's not much else really driving trading sentiment as we count down to the Fed decision later, which will have a significant impact on how things will play out for the rest of the week.
