Against the backdrop of diminished risk appetite, the JPY has made some marginal gains in lacklustre Asian trade. USD/JPY is down at 94.30 from a North American close Tuesday around 94.65, while EUR/JPY is down at 133.70 from around 134.05.
The failure of the euro bulls to sustain a fleeting breach of 1.4300 yesterday has put them on the backfoot. Seems to me the market is being totally dominated by what China does, and this is unlikely to change anytime soon.
We know they were sellers up around 1.4300 and talk has it they were buyers down in the 1.4130/40 area. As a result 1.4100/1.4300 could well prove a durable range short-term, barring any major surprises.
European data today;
German CPI (July) expected +0.2% m/m. -0.3% y/y
Harmonised expected +0.2% m/m, -0.4% y/y
06:45 GMT: French producer prices (June) expected -0.1% m/m, -8.6% y/y
07:30 GMT: Italian business confidence (July) expected 70.0
08:30 GMT: UK mortgage approvals (June) expected 47k
08:30 GMT: UK net consumer credit (June) expected £0.3 bln
08:30 GMT: UK net lending sec on dwellings (June) expected £0.6 bln
08:30 GMT: UK M4 money supply (June)
