Important events today:

12:30 UTC – US: producer price index for June.

Inflation expectations of Japanese households are rising, which is putting the Japanese Central Bank on edge. The monetary authorities do not want to raise interest rates as this would trigger a powerful crisis in the economy of the Land of the Rising Sun, with the longer the regulator does not react to insolation risks, the harder it will be to solve the problem.

The nearest meeting of the Central Bank will be held on July 28, where the regulator may announce the refusal to control the yield curve, which implies large-scale purchases of government bonds, in order to prevent the growth of securities yields. The percentage of Japanese households expecting prices to rise a year from now was 86.3 percent in June, up from 85.7 percent in March and reaching the highest level since June 2022, a fresh central bank survey showed. The survey showed that the percentage of households expecting prices to rise in five years also rose to a one-year high of 79.0% in June from 75.4% three months ago.

Recommendations: flat at 137.80 -138.80.