Stock markets around the world have been bouncing back a bit today. While the morning finds US index futures for the Dow and S&P sitting just below all-time highs, the Nikkei remains below 20,000 and the FTSE below 7,500.

In currency markets today the USD had been giving back some of its recent gains in what looks like a normal trading correction following a rally.

The worst performing currency on the day has been JPY following the Bank of Japan's stand pat meeting. The decision to maintain negative rates and QQE had 2 dissenters, but none of that was a surprise. Meanwhile, Governor Kuroda indicated there's no end in sight for stimulus. 

The JPY and Bank of Japan reaction provides an excellent example of how currencies are a relative trading game. While the Bank of Japan didn't change and didn't surprise anyone, other central banks have. This week the Bank of Canada, Federal Reserve Board and Bank of England have acted or hinted hawkishly, leaving ultra-doves like the BOJ looking lonely. It's like being at a party where some guests hear sirens and scatter ‎while others are left standing alone looking guilty when the cops show up. 

Today's calendar is light for data headlined by second tier numbers like housing starts and consumer sentiment, which could provide fodder for the weak hard data vs strong soft data debate. 

We could see some positioning in European markets ahead of the weekend with Brexit talks scheduled to start on Monday. News of another band aid deal for Greece may attract some attention. It appears that some arrangement has been reached to make sure Greece doesn't default on next month's debt payments and ‎try to kick the can past September's German elections. As usual, though, it doesn't do anything to solve the underlying problem so it does nothing to reduce the risk of social unrest this summer.

Corporate News

Reports of a CRTC decision to force carriers to stop charting unlocking fees for smartphones could impact Rogers, BCE, Shaw, Telus, Quebecor and other Canadian wireless stocks. 

Economic News

Significant announcements released overnight include:

Bank of Japan interest rate, QQE decision    no changes as expected    

Eurozone consumer prices        street 1.4% vs previous 1.9%

Upcoming significant economic announcements include:

8:30 am EDT        US housing starts             street 1,220K
8:30 am EDT        US building permits            street 1,249K

10:00 am EDT        US consumer sentiment            street 97.0

CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.