FOREIGN EXCHANGE: Dollar Is Likely to Resume Retreat Ahead of Bank of Japan Meeting and China's Trade Surplus Rises To New Monthly Record High
Summary: The Bank of Japan's monetary policy meeting is scheduled for the end of this week. It's widely expected that it will raise interest rates due to evidence of a strong Japanese economy and positive inflation. But large movements in the dollar are not anticipated as there are no other major currency-related announcements expected. Separately, the Chinese Commerce Ministry reported that China's trade surplus hit a new monthly high of $14.5 billion in June, versus the previous record surplus of $13 billion in May. Exports rose 23% year over year.