There have been so many discussions on Federal Open Market Committee meeting, the US second quarter GDP and July non-farm payrolls, but it is also worth looking at what else the local media are talking about.
First, there is Argentina’s looming debt default, which may cause risk aversion even though the impact will be limited. Secondly, more and more Chinese cities are relaxing their home purchase restrictions and banks are beginning to offer price rates to first time buyers, which help improve local financial market sentiment. Another hot topic is the question of further actions by the European Union against Russia and last but not least, there is Eurozone July CPI (+0.5 percent year-on-year expected), which may disappoint the European Central Bank, especially when the prospects of economic growth are under the shadow of geopolitical tensions. Market attention may quickly shift to European events after their US key counterparts.
USDJPY keeps bullish tone
The USDJPY has found solid support at 101.07 (double bottoms) and has broken through two important pressure lines. Safe haven demand for the JPY is muted amid the China and Japan equity markets’ rally. On technical charts, moving averages, MACD and RSI give coincident bullish signals. On the upside, resistance is seen at 102.23 and 102.50; on the downside, support could be found at 101.80, 101.60.
