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JPY: A July BoJ hike is underpriced – ING

The chances of a Bank of Japan hike in July are very much underpriced, ING's FX analyst Chris Turner notes.

USD/JPY may meet good selling interest around 145 area

"The market attaches around a 10% probability to such an outcome. Last night's release of April CPI data should worry the BoJ enough to prompt a 25bp hike in our opinion. And with the dollar staying relatively weak, USD/JPY will likely meet good selling interest should it make it back to the 145 area."

AUD/USD: Likely to trade in a range between 0.6370 and 0.6480 – UOB Group

Australian Dollar (AUD) is under mild downward pressure; it could edge lower to 0.6395. In the longer run, outlook is mixed; AUD is likely to trade in a range between 0.6370 and 0.6480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
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USD: Even Nobel Prize winners can be wrong – Commerzbank

In his latest blog post, US economist Paul Krugman (winner of the 2008 Nobel Prize in Economics) shows one of my favorite graphs: the net international investment position (IIP) of the US, in other words, the net debt (when negative) of the US economy vis-à-vis the rest of the world.
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