From Marc to Market:
Overview: The US dollar's losses have been extended ahead of the June CPI. At the same time, speculation that the Bank of Japan will adjust policy later this month saw the yen extend its gains for the fifth consecutive session. Sterling made new highs since last April, while the Swiss franc has risen to its best levels in about 2 1/2 years. The Dollar Index gapped lower and through the trendline drawn off the April and May lows. The greenback has steadied a little in the European morning. Given the move, there is risk of "sell-the-rumor, buy-the-fact" type of activity. Emerging market currencies are also mostly higher, including the Chinese yuan, which is at its best level in three weeks.
The yen's strength is weighing on the Nikkei, while indications of more economic support from Beijing are helping lift Chinese and Hong Kong equity markets. Other large bourses in the Asia Pacific region advanced with India being an exception. The Stoxx 600 in Europe is advancing for the fourth consecutive session, and US index futures are also enjoying a firmer tone. European benchmark 10-year rates are mostly 3-4 bp lower, though the yield on 10-year Gilts is off more than five basis points. The US 10-year Treasury yield is off about three basis points to 3.94%. The two-year yield is around 4.86%, having peaked near 5.11% last week. Gold is trading around $1935 and traded above $1940 for the first time since June 20. Focus in the oil market has shifted to supply and August WTI is trading above $75 a barrel and is approaching the 200-day moving average near $75.55.
Asia Pacific
China's June lending figures reported late local time yesterday were stronger than expected....
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