Look Ahead 2/8/23: BoJ minutes; Haleon, Taylor Wimpey, Qualcomm, Kraft Heinz earnings
The Bank of Japan minutes come after the Japanese central bank’s steps to tweak its yield curve control policy continued to weigh on the currency. Keep an eye out for ADP numbers ahead of Friday’s NFP.
(Video Transcript)
Bank of Japan
Hello, I'm Angeline Ong and this is IGTV. Welcome to a Look Ahead to the 2nd of August, 2023, and we begin with Japan. The Bank of Japan (BoJ) out with its minutes, which will be particularly interesting given the yen rather fell to a three-week low as the Bank of Japan stepped in last week to tweak its yield curve control, continued to weigh on the currency.
Just looking at the yen versus the dollar there, and as you can see there, there has been an impact. This cross trying to come up to this resistance point of $14,400 yet again, its second attempt, and what's particularly interesting as well is that it has come off quite a bit from the July highs.
AUD/NZD
The Australian dollar, if we're looking at currencies, is one that's a bit more fascinating. I'm just going to pull up this chart here for you, the Aussie versus the Kiwi, because earlier today the Australian dollar was set for its biggest day drop in one month after Australia's central bank held interest rates at 4.1% for a second month, saying past increases were working to cool demand, but they left the door open to more tightening depending on inflection.
ADP employment change figures
Now in the US we've got ADP employment change figures, of course the big set piece this week will be the jobs figure. On Friday we get another relatively solid number. It might sustain all those hopes out there of this continuation of the Goldilocks economy for the US.
Earnings
We've also got the EIA crude oil inventories, and on the earnings front, look out for Helion out with first half earnings. Just bringing up the chart for you, Helion, of course, is the spin-off of GlaxoSmithKline. It has been quite interesting recently, given everyone's watching its new chief executive.
The Brentford Middlesex-based company expected to report a 5.2% rise in revenues to just under £2.7 billion from £2.5 billion a year ago. Helion, as I mentioned earlier, is a consumer health business that GSK spun off in its most radical shake-up in 20 years.
Also, we've got BAE Systems out with first half earnings, along with Taylor Wimpey first half figres. British house prices fell by 3.8% in annual terms in July, the biggest drop since July 2009. Those were the figures from Nationwide.
And elsewhere, we've got Virgin Money's first quarter trading statement as well.
And from the US, look out for Robinhood Markets' Q2 earnings there, along with Qualcomm and Kraft Heinz.
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