💱 Tokyo & London Market Summary: Directionless Trading, Focus Shifts to Powell’s Speech
📌 Tokyo Session Highlights
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S&P affirmed U.S. sovereign credit rating at “stable” outlook → brief dollar buying, but gains faded.
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USD/JPY moved lower compared with the previous day, while EUR/USD and GBP/USD saw some short covering.
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Overall, markets transitioned into a range-bound, directionless phase.
🌍 Political & Geopolitical Risks
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Ukraine peace talks remain at an “entry stage”.
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Speculation of a Trump-aligned deal exists, but feasibility seen as 50/50.
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U.S. and Europe pushing forward with security assistance for Ukraine; EU and NATO maintain a hardline stance.
📊 Key Economic Data & Events Ahead
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U.S. Housing Starts: Forecast 1.297M (previous 1.321M)
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U.S. Building Permits: Forecast 1.386M (previous 1.393M)
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Canada CPI: Headline YoY +1.8% expected; Median & Trimmed Core +3.1%
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Speeches: Fed Vice Chair Bowman
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Earnings: Home Depot, Medtronic
💹 London Session Early Moves
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EUR/USD climbed to 1.1692
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GBP/USD rose to 1.3531
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U.S. 10-year Treasury yields eased from 4.34% to 4.33%, fueling dollar selling pressure
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Home Depot earnings: Same-store sales missed estimates → U.S. equity futures weakened
📈 Indicative Ranges by Currency Pair
| Pair | Range | Key Level / Focus |
|---|---|---|
| USD/JPY | 148.80 – 150.20 | Can USD/JPY break through heavy resistance at 150? |
| EUR/USD | 1.1650 – 1.1720 | Battle around the 1.1700 zone |
| GBP/USD | 1.3480 – 1.3550 | Holding above 1.3500 opens path higher |
| GBP/JPY | 199.50 – 201.00 | Watch sustainability of break above 200 |
| CAD/JPY | 109.20 – 110.20 | Tonight’s CPI could trigger large moves |
| AUD/JPY | 97.80 – 98.80 | Equity strength supports firmness |
| ZAR/JPY | 7.95 – 8.15 | Risk-on sentiment keeps ZAR steady |
✅ Wrap-Up
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S&P’s U.S. rating affirmation was only a short-lived factor; FX markets remain directionless.
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Tonight’s focus: U.S. housing data, Canada CPI, and Fed Vice Chair Bowman’s remarks.
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Main event of the week: Jackson Hole Symposium & Powell’s speech on Aug 22.
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Until then, markets likely to remain range-bound with only temporary reactions.
