Check out the brand new DailyFX trading forecasts[1] for Q3
MARKET DEVELOPMENTS – BOJ INTERVENES FOR A 3RD TIME IN A WEEK
Relatively quiet start to the week ahead of key risk events scheduled throughout the week. US equity futures trading in mixed fashion (DJIA +0.1%, Nasdaq[2] 100 -0.1%, S&P 500[3] -0.1%) as global equities fail to find any firm direction.
JPY[4]: Overnight, the Bank of Japan yet again offered buy an unlimited amount of 5-10yr JGBs at 0.1% (3rd time in one week) after bond yields rose as high as 0.11%, highest level in a yield as markets continue to speculate on the BoJ’s intentions. As such, eyes are on the Japanese Yen ahead of their monetary policy announcement. In terms of option markets, JPY call premium over puts are at the highest in a year, while ATM volatility is currently at the highest level since February.
EUR[5]: Slight lift in the Euro this morning after some encouraging inflation readings out of Germany[6] which remains above the ECB’s target, consequently, this bodes well for tomorrow’s Eurozone inflation data. Elsewhere, tighter US-German spreads from record levels has allowed for EURUSD[7] to make a test for the 1.17 handle.
USD[8]: The US Dollar[9] is softer against its G10 peers, down 0.2%. As we approach month-end, rebalancing models from various banks have indicated strong USD selling against major peers with the exception of the JPY, which is moderate.
DailyFX Economic Calendar[10]: Monday, July 30, 2018 – North American Releases
DailyFX Webinar Calendar[11]: Monday,
