MNI China Daily Summary: Thursday, July 4

MNI BRIEF: China Has Four Months To Negotiate EU EV Agreement

RPT-MNI INTERVIEW: ISM Choppiness Not A Clear Signal For Worry

MNI: PBOC Net Drains CNY98 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1305 Thurs; -0.79% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

Factory Orders Decline as Non-EU Orders Dip

DMP survey increases probability of August cut

MNI: UK JUNE CONSTRUCTION PMI 52.2 (FCST: 54.0); MAY 54.7

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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JPY: Pullback Opens Gap With Recent Highs, But Move Will Have Trouble Sticking

JPY
BulletForeign Exchange Bullets
  • Despite a slower start to the European session, USD/JPY slippage has picked up across the morning, with the pair hitting a new daily pullback low of 160.95 in recent trade. The pullback is yet to trouble yesterday's low and presumed first support at 160.78, but weakness through here would open a gap of well over 100 pips with the multi-decade high posted this week. 
  • The spot trade-weighted index has bounced off the series low posted this week, which may be granting some reprieve to the Japanese authorities, who will have been closely monitoring the currency this week. That said, the thin liquidity conditions across the US holiday may mean the JPY strength has trouble sticking ahead of the NFP release due on Friday. 
  • Light volumes are evident in JPY futures having traded just over 50% of the usual volume you'd have expected to see at this point in the session. 
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  • Despite a slower start to the European session, USD/JPY slippage has picked up across the morning, with the pair hitting a new daily pullback low of 160.95 in recent trade. The pullback is yet to trouble yesterday's low and presumed first support at 160.78, but weakness through here would open a gap of well over 100 pips with the multi-decade high posted this week. 
  • The spot trade-weighted index has bounced off the series low posted this week, which may be granting some reprieve to the Japanese authorities, who will have been closely monitoring the currency this week. That said, the thin liquidity conditions across the US holiday may mean the JPY strength has trouble sticking ahead of the NFP release due on Friday. 
  • Light volumes are evident in JPY futures having traded just over 50% of the usual volume you'd have expected to see at this point in the session.