North American FX Open - High beta FX remains under pressure

The high-beta risk sensitive currencies have continued their slide overnight, with the Aussie and the Scandi currencies still under severe pressure. The DXY has hit its highest level in a week, with the Franc, the Jpy and the Usd being the best three performing currencies, in that order, since last week's disappointing Chinese Q2 growth reading.

Usd/Jpy has edged back below the 156.00 level amid ongoing speculation over next week's BOJ verdict. Bbg reports (some) officials are open to raising rates at the July 31st 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.

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.

In other news, 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.

The ECB's vice president de Guindos declared that "data-wise, September is a much more convenient month for taking decisions than July was." De Guindos added that the central bank will have more information by September, as well as new macro-economic projections, so will be better placed to reassess the monetary policy stance.

On the subject of inflation, de Guindos predicted that it will remain around current levels until the end of the year and admitted that with the current level of economic uncertainty being "huge", the central bank needs to be prudent when taking decisions. The VP sees the disinflation process continuing from the start of next year and adds that they are already seeing that wages are starting to slow down.

Data today includes EZ consumer confidence, the Richmond Fed manufacturing survey and US existing home sales.

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