Morning Juice – Europe Session Prep

Good Morning Traders
It is Monday, the 29th July. Here is what to expect for today:

Sentiment

Bank of Japan Governor Kazuo Ueda will put markets on edge Wednesday when he unveils a detailed plan for quantitative tightening following years of huge easing. He may also double down by raising interest rates.

Hedge funds made a fast retreat from wagers against the yen as the once-popular carry strategy failed. Leveraged speculators reduced their net short positions on Japan’s currency by 56,639 in the two weeks ending July 23, the largest surrender since early 2011, according to Commodity Futures Trading Commission data.

Oil remained at a six-week low, as bullish Chinese economic data helped calm worry over demand in the world’s top importer, ahead of an OPEC+ monitoring meeting this week.

Bond traders who planned for gradual interest rate decreases starting in September are increasing their side bets in case the US economy experiences a precipitous downturn, prompting the Federal Reserve to become more aggressive.

Docket

04:30 ET
BoE Consumer Credit
Median Forecast 1.3B | Prior 1.513B

06:00 ET
UK CBI Distributive Trades
Median Forecast -10 | Prior -24

Earnings

06:30 ET
Mcdonalds Q2 2024 Earnings
Est. EPS $3.08 | Est. Rev. $6.65B

Good luck!