Apart from some strength in the Aussie, on the back of comments made by RBA’s Glenn Stevens, the rest of the Asian session session can best be described as a “non-event”
EUR/USD is very marginally firmer, up about 15 points at 1.4255. In general risk appetite remains in good shape. Talk China has been buying EUR/USD on dips towards 1.4180 in recent days will be lending underlying support. There are expectations they will be around on any moves back to 1.4150/80 area.
Interesting to see China talking about the possibility of a return to an inflationary environment. The PBOC says “From an overall viewpoint the CPI will stabilise in the second half of this year and may rebound” adding “our composite index showed that CPI would hit bottom at the end of the third quarter.”
The Bank says domestic demand is rising, with Q-2 growth stronger than expected at 14.9% on an annualised seasonally adjusted basis.
Some European data today, but it’s unlikely to get the pulses racing
06:00 GMT: Swiss consumption indicator (June)
06:45 GMT: French business survey – overall demand (July)
07:30 GMT: Italian consumer confidence (July)
10:00 GMT: UK CBI distributive trades (July)
