European FX Open - Over to the BOJ governor

USD/YEN's latest rebound peaks at Thursday's 143.95 high and starts the day materially softer in the wake of the overnight BOJ MPM decision.

As expected, rates were left at 0.25% and the Bank signalled it sees no need to hurry with interest rate hikes.

In its statement, the BOJ said inflation expectations 'have risen moderately' and that Japan’s economy is likely to keep growing 'at a pace above its potential growth rate', as underlying CPI inflation is 'expected to increase gradually'.

Meanwhile, Japan national CPI increased in August, coming in as expected at 3.0% y/y vs 2.8% the month previous, with the cores edging up too.

So, ahead of Ueda's post-verdict briefing, markets will continue to price the possibility of more tightening ahead of year-end. Over to the BOJ governor.

Also today and at the top of the hour, we get UK retail sales for August, with another positive number expected, ie (0.4% m/m vs 0.5% last.

We also see some confidence surveys out of France for September amid continued political concerns and uncertainty, but perhaps buoyed by a successful Paris Olympics.

In the second half, Canada retail sales for July leads, expected tp come in at 0.6% m/m vs -0.3% the month previous.

On the central bank front, there is Norges Banks peak from Bache and ECB's Lagarde is due around close.

Also overnight, Chinese banks maintained their benchmark lending rates for September, with the 1 and 5-years LPRs left at 3.35% and 3.85% respectively, as expected, as the admin held off on further monetary stimulus while financial institutions struggle with record-low profit margins. However, a Bbg red headline shows Beijing is said to be considering removing some of the largest remaining restrictions on home purchases after previous measures failed to revive a moribund housing market.

Sticking with China, the EU agreed to intensify discussions as the two parties seek ways to avoid looming tariffs on electric cars ahead of the scheduled deadline on September 25.

US stock futures are small in the red at the time of writing.

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