Main Points for Today

•     BoJ keeps policy steady, as expected

•      The Bank said that Japan’s economy continued to recover moderately and that inflation expectations appear to be rising

•      We think that in fact inflation is subsiding again and that with exports languishing, the BoJ is likely to take steps again to weaken JPY

•     WTI rises as US President Barack Obama authorizes targeted air strikes against Islamic militants in Iraq

•      ECB policy meeting

•      ECB President Draghi said that the Bank will keep rates low for an extended period of time in view of the current outlook of inflation

•      The Bank hired a consultant to design an ABS purchase programme; this has been done with the expectation of using it

•      He also added that markets observe divergent rate paths in the euro-area and the US. which indeed we do - that's why we expect EUR/USD to move lower

•     Today:

•      Eurozone: Germany’s trade and current account balances, French industrial production for June

•      UK: Trade balance for June

•      Canada: Unemployment rate for July is estimated to have remained unchanged at 7.1%.

•      US: No major data is due from the US.