Japanese Yen falls by over 1%

Currencies Direct July 27th 2016 - < 1 minute read

Today, we’re likely to see a bigger day than we did from yesterday’s quiet sideways movements. The majority of the majors were trading through narrow ranges with little to no market data to push in any particular direction. Overnight, we have seen the Japanese Yen fall by over 1% thanks to an increased expectation of policy easing. Meanwhile, the Nikkei market index closed with a 1.7% gain.
Q2 reading of preliminary GDP to be released

The main notable release this morning will be the reading of Q2 Preliminary GDP. The general consensus is that growth rate will remain unchanged from Q1, at a level of 0.4%. We can expect minimum market impact further to this release, unless we’re presented with a fairly eye-opening surprise – hence, this is one to watch. Looking at sentiment, the attention is already turning to Q3 performance after disappointing PMI surveys data for July. On the other hand, The Office for National Statistics is expecting rise of 0.5% where some analysts believe that the actual GDP growth rate may surprise on the upside.
Attention turns to US

In today’s key event, attention will be turned to the US at 7PM with the conclusion of the Fed’s July policy meeting. No changes are expected and with no press conference scheduled, the focus will be on the statement. Any hawkish (aggressive) changes to the statement could kick in some upward movement for the dollar. We can also look to the US for pending home sales data from June and the crude oil inventories at 3 and 3:30PM, respectively.


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