JASPER’S MARKET SQUAWK 24-07-2023

<h2>Listless Trading Ahead of a Busy Week</h2>
<p>Investors appeared hesitant to take risks going into the weekend, with the dollar gaining, reflecting the yen’s weakness.</p>
<p><img decoding="async" loading="lazy" class="alignnone wp-image-24408 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-58.png" alt="" width="1915" height="913" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-58.png 1915w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-58-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-58-1024×488.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-58-768×366.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/07/Untitled-design-58-1536×732.png 1536w" sizes="(max-width: 1915px) 100vw, 1915px" /><em><strong>Chart: USDJPY</strong></em></p>
<h2>Key Factors for Today</h2>
<ul>
<li>BOJ’s YCC Message Lifts USD/JPY by 1.25%</li>
<li>Cable’s Losing Streak Continues Despite Retail Sales Surge</li>
<li>IEA’s Possible Demand Revision Boosts WTI Prices</li>
<li>Aussie Slides Further Amid Chinese Gov Budget Concerns</li>
</ul>
<h2>USD/JPY Soars 1.25% After BOJ YCC Message</h2>
<p>Press reports on Friday suggested that the BOJ prefers to wait for more data before acting on yield curve control (YCC). Reportedly, the BOJ will revise its inflation expectations higher. June inflation came in at 3.3%, as expected. Japan’s top FX diplomat Masato Kanda once again said that the markets were being watched and excessive moves were undesirable. Japan’s Preliminary Manufacturing PMI was lower than expected, logging the second straight month of contraction, putting pressure on the yen after its drop following the press reports on the BOJ’s intentions regarding YCC. USD/JPY rose 1.25% to 141.83 on Friday as bulls failed to recapture 142.00, opening the door to 140.50 unless another attempt sees prices advance to 142.67.</p>
<h2>Cable on 6-Day Losing Streak Despite Retail Sales Upside</h2>
<p>Retail sales in June jumped 0.7% from 0.1% prior, with core retail sales doing even better at 0.8% compared to flat. The surprise resilience in the UK consumer helped support the FTSE, but the pound weakened as investors considered how much the BOE will hike at its meeting early next month, registering a 6-day losing streak shy above $1.28. $1.2940 is expected resistance above $1.29, and major support lies at $1.2765.</p>
<h2>IEA Possible Demand Revision Bolsters WTI</h2>
<p>The head of the IEA, Fatih Birol, said that the change in economic growth prospects in China would prompt the agency to revise its demand outlook this year. Moreover, Saudi Aramco, the world’s largest oil producer, purchased a 10% stake in a Chinese petrochemical firm for $3.4 billion Friday, a subsidiary of Sinope. WTI closed 1.50% higher to $76.75/bbl after bulls found resistance at the $77.25/bbl high. $75.65/bbl is expected support.</p>
<h2>Aussie Continues Losing Steam Amid Chinese Gov Budget</h2>
<p>The Australian dollar lost 0.80% on Friday due to the potential impact of upcoming policy meetings and concerns about China after the release of the government’s “wellbeing budget” on Thursday. The Fed’s t rate decision is one of the headwinds on the horizon that may impact the currency, paving the way to $0.6685 and perhaps slower until Wednesday. $0.6750 is a short-term ceiling.</p>
<h2>On The Docket</h2>
<ul>
<li>EA HCOB Manufacturing PMI Flash</li>
<li>S&amp;P Global/CIPS Manufacturing PMI</li>
<li>Chicago Fed National Activity Index</li>
<li>S&amp;P Global Manufacturing, Services PMI Flash</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie and Kiwi 0.08% higher</li>
<li>Euro is 0.02% lower, while the pound up by 0.15%</li>
<li>Japanese Yen 0.05% lower, Swissy down 0.07%</li>
<li>Loonie is somewhat flat, up by 0.02%</li>
<li>Gold is 0.16% lower, Silver deeper at -0.44%</li>
<li>Crude and Brent oil down by 0.21%</li>
<li>Natural gas is down by 0.92%</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/education/jaspers-market-squawk-24-07-2023-24407/">JASPER’S MARKET SQUAWK 24-07-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>