USD/JPY steady as market await Fed Chair Yellen’s speech, EUR/USD flat as Greek parliament votes

USD/JPY was steady in Asia as markets await Fed Chair Janet Yellen’s speech later today at a U.S. Congressional appearance. Investors will have a chance to hear her latest thinking at the semi-annual testimony. The USD/JPY pair traded in tight range, between 123.26-50 hovering close to a two-week high of 123.74 reached on Tuesday. The Bank of Japan’s well-anticipated decision on Wednesday to stand pat on monetary policy did not cause ripples, and focus shifted to Governor Haruhiko Kuroda’s media briefing at 0630 GMT.

There was little reaction to slightly stronger-than-expected China GDP. Data showing China’s economy grew a slightly better-than-expected 7.0 percent in the second quarter sparked little reaction, with its recent stock market rout still fresh in memory.

EUR/USD which has lost 1.5 percent this week, was little changed at 1.1001. As the deal between Athens and its creditors consigned the Greek debt saga to the back burner, focus has shifted back onto differentials between U.S. yields and those in Europe and Japan. But today is a big day again for Greece, so the euro will likely become vulnerable again as the Greek parliament votes on a raft of measures that were asked for by its creditors in a bailout agreement on Monday at the EU Summit.

GBP/USD was up modestly from 1.5629 to 1.5654, supported by a more hawkish Mark Carney. The Bank of England Governor mentioned that the time for an interest rate hike was moving closer.

AUD/USD was up a modest 0.2 percent at 0.7467. The overall reaction to the Chinese data was limited due to the issue of reliability regarding the indicators. China is a major trading partner of Australia.

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