Traders prepare for BoJ rate rise
This week all eyes are on Japan and the yen as speculation mounts that the Bank of Japan (BoJ) will raise rates for the first time in almost six years.
This morning the yen was at 113.651 to the dollar, 145.491 to the euro and at 210.390 to the pound.
The Japanese economy has recently seen signs of growth, lending in June was at its highest level in a decade, and this has given weight to the argument that the BoJ will raise rates from zero to 0.25 per cent on July 13th.
"The rapid loan growth readings not only justify but also necessitate the need to start scaling back monetary stimulus," Tomoko Fujii, a senior currency strategist at Bank of America, told Bloomberg.
In the UK, eyes turn north today as Edinburgh-based Standard Life lists its shares on the London Stock Exchange.
The insurance company priced its shares at 230 pence each on Friday, valuing the company at about £4.65 billion.
The public offering, the largest in the UK since 2000, will see three quarters of the company remain the hands of members, customers and employees after the sale.