- WSJ's Nick Timiraos highlight's Fed Waller's comment on September meeting being 'live'
- People's Bank of China Deputy Governor says Bank has ample policy tools
- Japan finance minister Suzuki to hold G7 Finance meeting on July 16
- Yen rising further - speculation mounts the BOJ to forecast inflation higher, tweak policy
- China's top diplomat Wang Yi says China-Australia relations have stabilised, improved
- PBOC sets USD/ CNY reference rate for today at 7.1318 (vs. estimate at 7.1453)
- China CASS says economic stimulus should be boosted by around US180bn by increased deficit
- Former BOJ Director Hayakawa expects the Bank to tweak YCC at the July meeting
- Singapore Q2 GDP +0.3% q/q (vs. 0.3% expected) (preliminary data)
- New RBA Governor announced to replace Lowe: Michele Bullock
- More from Fed's Waller - September is a live meeting for a rate hike
- ANZ revise their RBA peak rate forecast to 4.1% (from 4.35%)
- Japanese media report the BOJ is likely to raise its FY2023 inflation forecast above 2%
- Fed's Waller says he is in favour of raising the Fed Funds rate at the July FOMC meeting
- Deutsche Bank forecast an even higher EUR/USD, say 1.2 at year end is possiible
- Oxford Economics says a US recession is likely, S&P 500 unlikely to climb above 2022 high
- JPM forecast Brent oil to $86 at the end of 2023
- ICYMI - China's exports and imports in June fell more than expected
- Forexlive Americas FX news wrap 13 Jul: USD continues its drop helped by PPI
- JP Morgan maintains a bearish outlook on EUR/USD, targeting 1.05 (before 1.2 in 2024)
- NZD traders - it's a New Zealand market holiday on Friday, 14 July 2023
- NASDAQ index leads the charge. Major indices up for the 4th consecutive day.
- Trade ideas thread - Friday, 14 July 2023
USD/JPY continued its down move during the session. As I post the low has been circa 137.26. The yen was boosted by a couple of items out of Japan. Firstly, there was a media report that the Bank of Japan would revises its FY2023 inflation forecast above 2% at the meeting on July 27 and 28. The Bank has been insisting, over and over again, that they see CPI falling from around September/October this year. But if this expectation is revised away, to a level above the 2% target, a support leg for holding on to ultra-loose monetary policy is removed. Also during the session was a piece from Bloomberg (gated) on an interview it did with a former BOJ chief economist and director Hideo Hayakawa. He said he expected the Bank of Japan policy board “will make some kind of adjustment to YCC this month” and that setting the tolerance band for the 10-year yield from 0.5% either side of zero to 1% is a likely way to adjust yield control.
While on central banks, Federal Reserve Board Governor Christopher Waller spoke on his economic and policy outlook before the Money Marketeers of New York University during US Eastern time evening. Check out the posts above for his remarks, but notably he said that the September Federal Open Market Committee (FOMC) meeting is live, but if the next two CPI readings "look like the last two, the data would suggest maybe stopping."
Current Reserve Bank of Australia Deputy Governor Michele Bullock was announced as the new RBA Governor. Current Gov. Phil Lowe's term finishes in September, and Bullock takes over on September 18.
Other news and data flow was light.
While yen was the mover on the day the USD lost a little more ground elsewhere, notably against EUR, CAD and NZD. Moves were smaller in magnitude than in USD/JPY though.
