European FX Open - Dovish Uchida weighs on the YEN

The USD/YEN comeback continues and more 300 points-plus gains were registered overnight.

Comeback high is now 147.90 after sliding to 141.70 Monday, with latest catalyst being a perceived strong dovish signal from BOJ D-G Uchida who pledged to refrain from raising rates if markets are unstable. Uchida stated recent moves have been 'extremely volatile' and the BOJ needs to keep policy easy for now.

Recall we were bullish in Monday's The YEN Week - More carry longs to be exorcised this week? and have stated in most recent sessions that 150.00-151.50 is looking a formidable near-term obstacle. We largely stand by that.

Elsewhere, the commodity bloc enjoyed a broad comeback overnight. US stock futures all stand materially in the green, as GOLDMAN SACHS suggested the Fed will avoid making an emergency cut as 'we probably won’t see a recession.' Also, the NZD was independently supported and starts the day above the psychological 0.6000 mark as the NZ Q2 employment report was not as weak as forecast.

After yesterday's bumper 3.9% m/m German factory orders result, IP also for June will garner some interest at the top of the hour.

We also get the Swedish budget balance, Norway IP and French trade as well as Swiss FX reserves data for July this morning.

There's just US MBA mortgage applications and the Canada Ivey PMI scheduled in the second half, with the BOC's latest summary of deliberations coming after hours.

China's trade surplus fell to Usd 84.7bln in July, with exports growing for a fourth straight month of 7.0% y/y, but an uplift that’s likely insufficient to spur the economy in the absence of stronger domestic spending, reports Bbg.

On the news front, a NPR/PBS News/Marist poll shows Kamala Harris leads Donald Trump 51%-48% among registered voters in a head-to-head matchup nationally.

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