The Japanese yen extends recent decline in Asian session on more talk of monetary easing. BoJ board member Yukitoshi Funo warned of the "recently languid cycle between income and consumption" and urged policy makers to pattern attention to how it plays out. And, he emphasized that "Japan needs to shift away from a deflationary mindset that became entrenched due to a prolonged period of deflation." Meanwhile, he reiterated that the central bank will make full use of the policy tools to kick start consumer and business spending. There are speculations that BoJ would expand stimulus in the September 20-21 policy meeting. Technically, USD/JPY took out 102.64 resistance while EUR/JPY broke 114.80 resistance. Both developments indicate near term reversals.
US employment data will be the main focus today. August ADP report is expected to show 173k growth in private sector jobs. A solid ADP number will build up expectation of another month of good NFP which is expected to show 188k growth. Former Philadelphia Fed president Charles Plosser said that a solid NFP will put Fed in a tough spot for not reacting in September meeting. He also noted that wage growth and personal income growth has been "pretty healthy". Currently, fed fund futures are pricing in 24% chance of September hike and 55.9% chance of December hike.
Elsewhere, UK Gfk consumer sentiment rose to -7 in August. New Zealand NBNZ business confidence dropped slightly to 15.5 in August. Japan industrial production was flat mom in July. Looking ahead in European session. Swiss will release UBS consumption indicator. Germany will release unemployment. Eurozone will release unemployment and CPI flash. US will release ADP employment, Chicago PMI and pending home sales. Canada will release GDP.