Headlines:
- Welcome to ECB day
- UK PM Truss announces a cap on energy bills for the next two years
- Japan top currency diplomat: Government, BOJ is extremely worried about recent yen moves
- Japan top currency diplomat: No statement needed as understanding on FX remains unchanged
- France July trade balance -€14.5 billion vs -€13.6 billion expected
Markets:
- CHF leads, AUD lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields down 4 bps to 3.225%
- Gold up 0.5% to $1,725.48
- WTI crude up 0.7% to $82.49
- Bitcoin down 0.4% to $19,300
It was a quiet session for the most part as markets are counting down to the ECB policy decision at 1215 GMT today.
The yen was in focus early on as Japan's top financial officials gathered for a meeting to discuss the rapidly weakening yen. There was some warning words being offered in the end but USD/JPY brushed it aside initially before falling back now as bond yields also track lower on the day.
USD/JPY fell from 144.00 to 143.55 initially before ranging around 143.70-90 and then falling back to 143.45 after the remarks from Japan's top currency diplomat Kanda. It rebounded to 144.00 again before sliding back to 143.30 levels now amid a fall in Treasury yields today.
Elsewhere, the pound is getting a bit of a nudge higher as UK PM Truss announces a guarantee for energy bills in the UK. GBP/USD nudged to a low of 1.1477 during the session but has now made its way up to 1.1560.
The euro is in focus with the ECB coming up and EUR/USD is keeping near parity amid large option expiries near the figure level. Over to Lagarde & co. now..
