US equity index futures start trading on Globex with little change, while Nikkei futures show a slight increase.
by VT Markets
/
Jul 20, 2025
US equity index futures have opened the week on Globex with little change in the ES and NQ futures. Nikkei futures have increased slightly after the Japanese election over the weekend.
The Japanese Yen has started the week strong. The USD/JPY is about 147.85, while the EUR/JPY is around 172.10. However, Japanese markets are closed today for a holiday.
Market Calm Before Economic Events
ES futures, which track the ES, are showing limited movement as the week begins. For more market insights, you can check online financial platforms.
We see this quiet start as a short pause before important economic events. Traders should brace for possible increased volatility, especially with the upcoming U.S. Consumer Price Index (CPI) report. These inflation data releases can cause significant shifts in equity index futures.
The biggest news is the yen’s notable rise. This is due to growing belief that the Bank of Japan may soon end its negative interest rate policy. Governor Kazuo Ueda’s recent comments have supported this view, and overnight index swaps are now indicating about a 45% chance of a rate hike by the end of January 2024. This is a significant change from just a few weeks ago.
Strategies For Traders
Given the current situation, we suggest traders consider strategies that take advantage of increased price fluctuations, rather than betting on a specific direction. With the VIX volatility index around 13.5, which is low historically, buying options contracts on major indices is relatively affordable. This presents a chance to prepare for a big move following the U.S. data release.
For those interested in currency derivatives, the yen’s movement presents a clear, though risky, trend. The reduced liquidity from the Japanese holiday can amplify price changes, but the underlying speculation about policy is strong. We expect USD/JPY might test the 145 level, which is a key technical support area from late November if hawkish comments from officials continue.
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by VT Markets
Jul 20, 2025
Insights 
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