Yen on the run as BoJ keep guidance...........>

FOREX: Yen on the run as BoJ keep guidance unchanged

-JPY is comfortably the best performer across G10 FX following the Bank of Japan

rate decision overnight. Kuroda and the board kept policy and forward guidance

unchanged (although the inflation outlook was trimmed slightly), countering some

who saw the Bank strengthening their commitment to easy policy ahead of the Fed

decision Wednesday. USD/JPY remains above the week's lows of Y108.42, however,

with broader markets quieter today.

-GBP/USD hit a fresh cycle low of $1.2119 across the Asia-Pac session, although

the pressure has alleviated somewhat ahead of the NY crossover. Options markets

are, however, still keen to hedge against further downside, with put notional

outnumbering that of calls by 3:1 so far Tuesday.

-SEK is the poorest performing major as GDP growth fell well below forecast. Q/Q

dropped to -0.1% vs. Exp. +0.3%, helping boost EUR/SEK to the best levels of the

month.

-German CPI data, US personal income/spending, pending home sales and consumer

confidence for July are the calendar highlights.