Quiet Start to the Week, Focus Shifts to Mid-Week U.S. and Japanese Monetary Policies
The market opened quietly this week, with few notable economic indicators or speaking events. Despite weaker-than-expected GDP data from Sweden, the reaction in the Swedish krona was minimal. At 5:30 PM Japan time, the UK’s consumer credit and M4 money supply figures are expected to be released, but no major economic indicators are scheduled thereafter.
With the upcoming FOMC meeting on the 31st, U.S. financial authorities have entered a blackout period. The same day, the BOJ’s monetary policy meeting results will also be announced. Currently, there are no significant reports or statements from officials. The market’s attention is focused on the Paris Olympics-related news. In the U.S. stock market, McDonald’s earnings report is in the spotlight.
In the Tokyo and Asian markets, USD/JPY and cross-yen pairs are moving slightly towards yen appreciation. Ahead of the U.S. and Japanese monetary policy announcements on the 31st, USD/JPY continues to hover around the 153 yen level, with nervous movements. Attention remains on any observational reports or statements from BOJ-related officials. In the currency options market, USD/JPY’s one-week volatility is hovering in the mid-14% range, indicating sensitivity to new developments.
Meanwhile, the Bitcoin market is active, driven by Trump’s intention to make the U.S. a leading Bitcoin nation and his supportive comments on favorable cryptocurrency regulations. Bitcoin is expected to rise further if it surpasses the $70,000 resistance level, with the potential to reach an all-time high this week.
