The Bank of Japan offered a verbal support, with an indication that it wants to maintain low rates. The markets reacted with the yen was sold and also dragged down the Swiss franc. The dollar-bloc currencies are trading higher, while the euro and sterling are consolidating. Equities are higher with The S&P500 futures are up 1%, while NASDAQ are showing a 1.3% gain. Gold is trading firmer to reach $2400. WTI is also trading higher, slightly below $74.

Asia Pacific markets.
The deputy governor of the BoJ provided the first response to market developments and said he thought that rates should be held steady. The market evaluated this as a dovish signal and sold the yen while buying equities. The dollar has held above JPY144. It reached JPY147.90 on Uchida's comments. The corrective pressure may extend toward JPY150. Despite the hawkish stance by the RBA, the Australian dollar seemed unwilling to respond. However, the stabilization has led the Aussie recover to session highs slightly above $0.6540. Resistance near $0.6550 has been overcome today and the Australian dollar reached a 7-day high.

European markets
The euro was confined slightly above $1.09 yesterday. It remains in that range so far today. Between last Friday and Monday, the euro rallied from about $1.0780 to $1.1010. That 2-day range is nearly as big as monthly ranges of the year. Sterling looks unreliable. It is in a tight range on either side of $1.27. It extended a decline to approach its lowest level since July, a bit below $1.2675. However, it has reached a support area marked by the 50% retracement of last month's sterling rally and the 200-day MA.

American markets
The US reports June consumer credit, which is not a market mover. Boston Fed President Collins may also speak. The Canadian dollar's gain was the best since late May. The US Dollar settled below CAD1.38 for the first time since July 23. It has now given back about half of its gains. Meanwhile the Greenback's losses were extended today to about CAD13.750. The next support area is seen around CAD1.3700.