週一交易安靜 - 8.19

FX markets are steady today with majors opening around the same level like ending on Friday night. The Euro against the greenback is fluctuating around 1.3320 just below the top of 1.3398/1.2755 long term wide range. The greenback retreated on Friday amid weaker than expected US Housing data. US indices also closed lower on Friday on risk averse and on uncertainty on FED asset tapering. On Wednesday investors would focus on US FOMC minutes of the 31st July meeting for further clues regarding FED’s intentions on September meeting.

Japanese equities were positive in today’s trading after Exports increasing by 12.2% in July compared to 7.4% in June, however Imports also increased by 19.6% in July up from 11.8% in June, widening adjusted Trade deficit to ¥944.0 bln from ¥663.7 bln the previous month. The USDJPY drew a support line at 97.35 and rose back to resistance at 97.80. The Japanese aggressive monetary policy seems to have a positive effect on inflation that became positive in the last reading but does not seem capable to achieve 2% target. Moreover, the GDP latest figure slowed to 0.6% down from 0.9% in the previous release. Adding to that Moody’s reviewed the economic growth of Japan as credit negative.

Elsewhere, the British pound remains firmly near 1.5650 against the US dollar with no major releases to expect this week for the sterling apart the 2nd estimate of quarterly GDP on Friday. The greenback versus the loonie expands into 1.0358/1.0292 sideways with traders looking towards Retail Sales on Thursday. Lastly, concerning Euro zone Manufacturing and Services PMI reports on Thursday would reveal further indications for growth prospects.