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U.S. Dollar Rises Against Majors





The U.S. dollar strengthened against the other major currencies in the Asian session on Monday. The U.S. dollar rose to a 6-year high of 0.7327 against the Australian dollar, a 3-month high of 0.9630 against the Swiss franc and nearly a 2-month high of 1.0819 against the euro, from Friday's closing quotes of 0.7368, 0.9607 and 1.0827, respectively. The greenback advanced to 1.5582 against the pound and 124.18 against the yen, from last week's closing quotes of 1.5597 and 124.04, respectively. Against the New Zealand and the Canadian dollars, the greenback edged up to 0.6504 and 1.2998 from Friday's closing quotes of 0.6512 and 1.2968, respectively. If the greenback extends its uptrend, it is likely to find resistance around 0.72 against the aussie, 0.97 against the franc, 1.06 against the euro, 1.52 against the pound, 126.00 against the yen, 0.63 against the kiwi and 1.30 against the loonie.


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Barclays plans to cut more than 30,000 jobs: The Times


The Times on Sunday reported that Barclays Plc intends to slash more than 30,000 jobs within 2 years after firing Chief Executive Antony Jenkins this month. This move could reduce the global workforce of the bank below 100,000 by 2017 end. It is considered as the only way to address the continuing poor performance, the paper said. These job cuts are likely to affect staff at middle and back office operations. The paper said that a potential candidate, who would replace Jenkins, is expected to axe jobs much faster and more deeply than the ejected boss.


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BoJ Minutes: Economic Recovery Is Still On Track





Members of the Bank of Japan's monetary policy board said that the country's economic recovery continues to grow at a satisfactory pace, minutes from the board's June 18-19 meeting revealed on Tuesday. The recovery is expected to continue, the board said, although downside risks include the European debt situation and the state of commodity exporters. "Japan's economy has continued to recover moderately. Overseas economies - mainly advanced economies -- have been recovering, albeit with a lackluster performance still seen in part," the minutes said. In the battle against deflation, the board said that consumer prices figure to be roughly flat due to falling energy prices. "Inflation expectations appear to be rising on the whole from a somewhat longer-term perspective," the bank said. At the meeting, the bank decided to hold its benchmark lending rate steady at 0.10 percent, and also to maintain its target of raising the monetary base at an annual pace of about 80 trillion yen. The bank also announced plans to reduce monetary policy meetings from 2016, down to eight from the current 14. In addition, it would raise the frequency of its economic outlook reports. Accordingly, it will publish forecasts for the economy and prices on a quarterly basis instead of twice yearly. In terms of economic data, exports have been picking up and steady improvement in the employment and income situation support private consumption. "Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner," the bank said.


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British pound plunges ahead of BOE minutes





The British pound plummeted on Monday as traders expected minutes from the Bank of England due this week. Last week, BOE Governor Mark Carney implied a decision on rates would surface as soon as November or February. Sterling dropped half a percent to 69.77 pence per euro. Against the US dollar, the currency traded at $1.5539. We believe there is not much room for rates to increase further. To make a case for rate hike “expectations from the current levels you need accelerating growth momentum,” said Manuel Oliveri, Currency Strategist at Credit Agricole. Investors, with no key data releases or policymakers' speeches Monday, are awaiting the minutes of the central bank's monetary policy committee.


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Greece Prepares For Second Bailout Vote Today





The Greek parliament is preparing for another vote on the final bailout negotiations on Wednesday as Prime Minister Alexis Tsipras seeks to close the third bailout deal that will offer up to EUR 86 billion debt, after Greece repaid money due to the International Monetary Fund and the European Central Bank. The Greek government expects the final bailout deal by August 20, which is the deadline for a EUR 3.6 billion debt due to the ECB ahead of the EUR 1.5 billion due to IMF in September. On Monday, the crisis struck country repaid the money due to the IMF, the ECB and the Greek central bank, worth EUR 6.8 billion in total with the European Commission's EUR 7.16 billion bridge-loan. In addition, Greek banks reopened partially on Monday, helped by ECB raising the emergency lending assistance by 900 million euros for a week. Nevertheless, Greek stock and bond markets are reportedly to remain closed through Wednesday. Meanwhile, on Tuesday, Standard & Poor's Ratings Services upgraded Greece's long-term sovereign credit rating to 'CCC+' from 'CCC-' on the view that the Greek default on its stock of commercial debt is no longer inevitable in the next 6 to 12 months. S&P's affirmed short-term credit rating at 'C' with a stable outlook. S&P's analyst Frank Gil expects the possibility of Greece leaving the eurozone has declined to less than 50 percent within his forecast horizon to 2018. But he projects that the risk of an exit is still high if the Greek government does not implement the bailout program. Gil expects the new bailout program negotiations to take at least a month and projects the Greek economy to shrink by 3 percent this year. He doesn't expect capital controls to be lifted until institutions close review of banks' capital requirements late this year or in early 2016. On the other hand, on Monday, Moody's Capital Markets Research cut Greek Sovereign Expected Default Frequency metrics, which measures the expected probability of default over a year, to 3.17 percent from over 20 percent, due to positive developments over the past week. Moody's said Greece's probability of default is elevated at 3.17 percent as uncertainty remains over upcoming negotiations on a full bailout program, which are expected to last at least a month. "Even if the planned new Greek bailout is quickly and smoothly implemented, the economy looks set to remain in a deep and prolonged recession. We expect the Greek economy to contract by about 3 percent this year and possibly by much more, with little improvement in 2016," said Jonathan Loynes, Chief European Economist at Capital Economics.


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Japan Has Y69.0 Billion Trade Shortfall In June





Japan posted a merchandise trade deficit of 69.045 billion yen in June, the Ministry of Finance said on Thursday. That missed forecasts for a surplus of 45.8 billion following the downwardly revised 217.2 billion yen deficit in May (originally -215.97 billion). Exports climbed 9.5 percent on year to 6.505 trillion yen, shy of expectations for a gain of 10.0 percent following the 2.4 percent increase in the previous month. Exports to all of Asia jumped 10.1 percent on year to 3.525 trillion yen, while exports to China alone gained an annual 5.9 percent to 1.160 trillion yen. Exports to the United States climbed 17.6 percent on year to 1.302 trillion yen, while exports to the European Union gained an annual 10.8 percent to 665.452 billion yen. Imports dipped an annual 2.9 percent to 6.574 trillion yen versus expectations for a fall of 4.2 percent after tumbling 8.7 percent a month earlier. Imports from all of Asia added 7.0 percent on year to 3.193 trillion yen, while imports from China alone advanced an annual 6.9 percent to 1.571 trillion yen. Imports from the United States surged 14.9 percent on year to 723.707 billion yen, while imports from the European Union added an annual 6.5 percent to 696.294 billion yen. The adjusted trade balance showed a deficit of 251.7 billion yen - which beat expectations for a shortfall of 260.0 billion yen following the upwardly revised 155.2 billion yen shortfall in May (originally -182.5 billion yen).


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Japan Corporate Service Prices Rise 0.4% In June





Corporate service prices in Japan were up 0.4 percent on year in June, the Bank of Japan said on Monday - shy of estimates for 0.6 percent, which would have been unchanged from the May reading. On a monthly basis, prices were flat after adding 0.1 percent in the previous month. Among the individual components, prices were up for leasing and rental, but down for advertising and civil engineering. For the second quarter of 2015, corporate service prices gained 0.6 percent on year after jumping an annual 3.2 percent in the first quarter. On a quarterly basis, prices advanced 0.4 percent after easing 0.2 percent in the three months prior.


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Australian dollar remains below 73 US cents





The Australian dollar was still trading below 73 US cents Monday, following it touched a new six-year low last weekend. The Aussie ended at 72.89 US cents from Friday's 73.02 US cents. On Friday, the currency declined to 72.60 US cents, its weakest since May 2009, on disappointing Chinese data.


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Argentina Industrial Production Falls In June





Argentina's industrial production decreased in June after rising in the previous month, figures from the National Institute of Statistics showed Monday. Industrial production fell a seasonally adjusted 0.8 percent year-over-year in June, reversing a 0.4 percent climb in the previous month. Production of basic metals declined 6.7 percent annually in June, while automobile production grew by 6.8 percent. On a monthly basis, industrial production increased at a faster pace of 1.2 percent in June, following a 0.2 percent slight rise in May. It was the third consecutive monthly hike. During the first six months of the year, aggregate industrial production contracted a seasonally adjusted 1.3 percent compared to the corresponding period last year.


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Pound Rises Against Most Majors





The British pound strengthened against most major currencies in the Asian session on Thursday. The pound rose to nearly a 5-month high of 1.5119 against the Swiss franc and a 1-week high of 0.7026 against the euro, from yesterday's closing quotes of 1.5092 and 0.7036, respectively. Against the yen, the pound climbed to 193.81 from yesterday's closing value of 193.33. If the pound extends its uptrend, it is likely to find resistance around 1.52 against the franc, 0.69 against the euro and 195.30 against the yen.


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