Forex news and economic trading headlines 28 July 2016
There will only be three key moves over the BOJ
USDJPY levels to watch over the BOJ
Here's the details of Japan's MOF/BOJ statement draft
ECB's Coeure: ECB policy is proving to be effective in lifting inflation
Japan's MOF has prepared a draft statement in the event of BOJ action - Reuters
Spain's Rajoy to face confidence vote
The Monte Paschi house of cards looks awfully shaky as banks decline to guarantee cash boost
What is your BOJ trade going to be?
Video preview: What to expect from the Bank of Japan
Inflation to rise soon says ECB's Villeroy
July 2016 US Kansas City Fed composite -6 vs 2 prior
Special police operation underway in German labour office in Cologne
Atlanta Fed GDPNow forecasts US Q2 at 1.8% vs 2.3% prior
Atlanta Fed slashes Q2 GDP the day before the release
Latest Genscape Cushing oil inventories +219.6k - Livesquawk
USD selling tipped for end of month flows
Did the Fed get a sniff of tomorrows US GDP?
EURUSD playing nicely within the range
Alan Greenspan: We're seeing the early stages of inflation
June 2016 US advance goods trade balance -63.3bn vs -61.0bn exp
US initial jobless claims 266k vs 260k exp
What to expect from the Notorious BOJ? - Credit Suisse
July 2016 German HICP flash 0.4% vs 0.3% exp y/y
More from Merkel: Decision to avoid fines for Portugal and Spain doesn't mean Stability Pact doesn't apply
Will USDJPY bulls go all in on the BOJ?
Merkel says the repatriation of migrants process must be improved
France's Villeroy says French banking system is extremely solid
Everything is pointing towards Japan for what is going to be one of the biggest BOJ meetings in a long long while.
The market had settled into wait and see mode for most of today, USDJPY sat in a 20/25 pip range but with more of a bullish bias than not. Late in the session we hit crazy hour as Reuters dropped a story that Japan's MOF had drafted up a response in advance of any BOJ action. That was enough to shake some lingering doubts that the BOJ would act. Why draft something unless you know something is coming?
Off we went through 105.00 right up to 105.51 before running out of steam. We remain well bid around the 105.30/40 level as the US shuts up shop.
The other majors haven't done an awful lot in the meantime. For once the pound and the euro can sit back and watch a mess developing somewhere else. They will get pulled about by the yen crosses so if you're in trades, be prepared to be pulled and pushed about.
US stocks have closed with small gains or losses. The S&P finished +3 at 2170, Dow -16 at 18456 and the Nasdaq +15 at 5155.
Oil has continued its decline and trades down near 41.00 in WTI and 42.60 in Brent. That's been of no consolation to USDCAD that's become detached from the oil trade for the moment. It's under 1.3200 at 1.3155.
I need not say more about the BOJ. Eamonn's nearly ready to take up that baton with great aplomb. Once again, I wish you safe trading over the BOJ. Remember, while this is a big event that can make you lots of money, it's also one that can cost you loads too. Markets will be here after the BOJ so there's nothing wrong with ducking this event and picking it up again tomorrow.
