Markets are trading mixed in Asian session with Nikkei having slight gain of 0.3% at the time of writing. That follow a slight retreat in US stocks overnight with S&P 500 closed down -0.09%. Gold is hovering at around 1340 after failing to take out 1377 resistance last week. WTI crude oil also retreats mildly after failing to sustain above 43 handle. Dollar index is struggling to find follow through buying and is held below last week's high at 96.52. In the currency markets, Aussie and Dollar are both trading generally higher but gain is limited. Yen is paring some of recent gains and is trading generally lower, followed by the Swiss Franc. Movements in the currency markets could stay muted but there is prospect of further weakness in European majors.
In UK, BoE policy maker Ian McCafferty said that impact of Brexit to UK economy is still "very limited". And, the MPC "faces a set of economic circumstances that make assessing the appropriate amount of policy stimulus more difficult". He noted that if the UK economy slows "in line with the initial survey signals, I believe that more easing is likely to be required, but that can easily be delivered in coming months." And he preferred a "learn as we go" approach.
In Australia, NAB chief economist Alan Oster noted that "the case for further cuts from the RBA appears to be mounting." He pointed out that inflation outlook remains "very subdued" and "Most of the factors currently suppressing inflation are likely to persist, including low wages growth, strong retail competition both domestically and offshore, low commodity prices globally and slow growth in rents as dwelling supply picks up." He predicts that RBA will cut interest rate from the current 1.50% to 1.00% within a year.
On the data front, BRC sales monitor rose 1.1% yoy in July. Japan M2 rose 3.3% yoy in July. Australia NAB business confidence dropped to 4 in July. China CPI slowed to 1.8% yoy in July while PPI rose to -1.7% yoy. Swiss unemployment rate and Germany trade balance will be released in European session. Focus will mainly be on UK productions and trade balance. US will release non-farm productivity and wholesale inventories in US session.