August 2, 2012
Despite the recent rebound in the global stock markets, the yen still made some notable gains against higher-yielding currencies in the last 24 hours. The yen, however, was unable to steal some pips from the safe haven dollar.
The only data released was the Bank of Japan’s Monetary Base. The report, which measures the total change in the total amount of yen in circulation and deposits held at the BOJ, showed an increase of 8.6%, much higher than the 6.2% the market had initially expected. Increasing money supply is usually considered bullish for the domestic currency, as it could lead to inflation in the future.
No tier 1 data scheduled for release from Japan today, so the yen will probably be at the mercy of events happening in other major economies. Pay special attention to the BOE and the ECB interest rate decisions as they could have an indirect but strong impact on the yen’s price action.
"The only cable I watch is the pound baby."