ForexLive Asia-Pacific FX news wrap: Huge swings for yen crosses

• Bank of England Chief Economist Pill speaks on Thursday
• Marubeni CFO says expects a limited impact from the Bank of Japan rate hike
• China’s State Planner Vice Head says will actively expand domestic demand
• Japan chief cabinet secretary Hayashi says important for FX to more in stable manner
• Bank of England meet Thursday, rate cut expected, but a ‘hawkish’ cut
• China Caixin Manufacturing PMI for July 2024 49.8 (expected 51.5, prior 51.8)
• Australian Q2 2024 Import price Index +1.0%q/q (expected -0.7%) Export -5.9% (exp -5.3%)
• Australian June Trade balance: Surplus of AUD5589mn (prior 5773mn surplus)
• PBOC sets USD/ CNY reference rate for today at 7.1323 (vs. estimate at 7.2167)
• Japan spent $36.8 billion on foreign exchange market intervention in July
• Japan July Manufacturing PMI (final): 49.1 (prior 50.0)
• PBOC is expected to set the USD/CNY reference rate at 7.2167 – Reuters estimate
• China – Henan province named 25 indebted and feeble local banks to be merged
• South Korean finance minister says will swiftly act to stabilize financial markets if need
• Jp Morgan looking for a cascade of Federal Open Market Committee (FOMC) rate cuts ahead
• Australian July Manufacturing PMI (final) 47.5 (prior 47.2)
• Wall Street Journal – Fed made an important pivot, cleared path for a September rate cut
• Bond king Jeffrey Gundlach said the Federal Reserve should have cut rates on Wednesday
• Ukraine’s government will suspend foreign debt payments, beginning 1 August 2024
• Bank of America says oil’s Bermuda triangle is nearing an end
• Forexlive Americas FX news wrap: What a day, it had everything
• US stocks post biggest one-day gain since February to finish the month near flat
• Meta and Qualcomm jump after earnings
• Trade ideas thread – Thursday, 1 August, insightful charts, technical analysis, ideas

USD/JPY
and yen crosses had another day of large swings after the Bank of
Japan decision on Wednesday to raise rates and the signs from the US
Federal Reserve that a rate cut from them is as close as September.

From
above 150 in the morning USD/JPY fell to around 148.50 before surging
back to around 149.80. We had data from Japan today, but that’s not
what mainly moved the yen. We also had some commentary from Japan
chief cabinet secretary Hayashi about FX moving in a stable manner.
But he was just going through the motions, Japanese authorities are
happy that the yen is not weakening as it was only a few weeks ago.

Other
major FX traded in a much more subdued manner. Gold moved towards
$2460 but has since come back to around $2440. Bitcoin remained
heavy, its under USD64K as I post.

US
equity index futures continued their bounce back, adding to their
gains from Wednesday.

This article was written by Eamonn Sheridan at www.forexlive.com.