European FX Open - YEN makes pre-BOJ gains

Another thin calendar.

Just the likes of EMU consumer confidence, the Richmond Fed business confidence and US existing home sales scheduled ahead, all coming in the second half.

On the central bank front, ECB's Lane is an expected speaker this morning.

The YEN was the main mover overnight and starts the day firmer across the board amid ongoing speculation over next week's BOJ verdict. Bbg reports ( some) officials are open to raising rates at the July meeting given that inflation remains broadly in line with forecasts; assessing the Bank's policy rate range of 0 to 0.1% to be very low and see a risk of missing an opportunity to hike rates given a lot of uncertainties going forward. However, also, officials see weakness in consumer spending complicating their decision over hiking and some view skipping a rate hike in July allows more time to examine incoming data to confirm if consumer spending will pick up as expected, Some of them believe the BOJ should avoid giving the impression of being overly hawkish.

Mixed views the theme currently and the Nikkei report a top Japanese ruling party lawmaker called on the BOJ to be more clear in articulating its policy, including its consideration of raising rates gradually.

So, there is still a chance of a hike this week, with implied probability of such a move currently standing at 44%.

Meanwhile, CBS News reports.US VP Harris has attracted the support of enough Democratic delegates to become the party's nominee for president. The campaign banked a record Usd 81mln in the first 24 hours after announcing her candidacy and Harris is scheduled to speak in Milwaukee today.

And, French President Macron called for a 'political truce' during the summer Olympics in Paris, which begin Friday, potentially delaying the appointment of a PM and the formation of a new government.

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