Yen Slips Slightly as BoJ Offers No Clues on Rate Hike, Kiwi Struggles After Weak Services Data
| Action Insight Daily Report 11-18-24 |
Yen Slips Slightly as BoJ Offers No Clues on Rate Hike, Kiwi Struggles After Weak Services Data |
Yen weakened broadly during the Asian session today, as traders expressed disappointment with BoJ Governor Kazuo Ueda’s remarks. Ueda repeated familiar stances on monetary policy but refrained from offering any signals regarding a December rate hike. This lack of clarity left markets unimpressed. However, the currency’s losses have been modest so far, with its direction remains closely tied to overall risk sentiment. Yen showed strength late last week, buoyed by the sharp selloff in US equity markets, where island reversal patterns emerged in S&P 500 and NASDAQ. Should this negative stock market sentiment persist, it could provide a fresh catalyst for Yen appreciation in the near term. Meanwhile, Kiwi is facing selling pressure, ranking among the weakest performer today so far. The disappointing services index reading from New Zealand added to the currency’s challenges. Expectations are firm for RBNZ to deliver another 50pbps rate cut next week. A significant factor influencing this expectation is RBNZ’s meeting calendar, as it will not convene again until mid-February 2025. This December/January gap could prompt the central bank to frontload further easing.... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 193.21; (P) 195.83; (R1) 197.37; More... Intraday bias in GBP/JPY stays on the downside despite today's weak recovery. Prior break of 55 D EMA (now at 195.23) argues that corrective rise from 180.00 has completed with three waves up to 199.79, after hitting rising channel resistance. Further decline would be seen to 193.45 resistance turned support. Decisive break there will target 183.70 next. For now, risk will stay on the downside as long as 198.43 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PSI Oct | 46 | 45.7 | | 21:45 | NZD | PPI Input Q/Q Q3 | 1.90% | 1.00% | 1.40% | | 21:45 | NZD | PPI Output Q/Q Q3 | 1.50% | 0.90% | 1.10% | | 23:50 | JPY | Machinery Orders M/M Sep | -0.70% | 1.40% | -1.90% | | 10:00 | EUR | Eurozone Trade Balance (EUR) Sep | 7.9B | 11.0B | | 13:15 | CAD | Housing Starts Y/Y Oct | 239K | 224K | | 15:00 | USD | NAHB Housing Market Index Nov | 42 | 43 |
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Yen Slips Slightly as BoJ Offers No Clues on Rate Hike, Kiwi Struggles After Weak Services Data
| Action Insight Daily Report 11-18-24 |
Yen Slips Slightly as BoJ Offers No Clues on Rate Hike, Kiwi Struggles After Weak Services Data |
Yen weakened broadly during the Asian session today, as traders expressed disappointment with BoJ Governor Kazuo Ueda’s remarks. Ueda repeated familiar stances on monetary policy but refrained from offering any signals regarding a December rate hike. This lack of clarity left markets unimpressed. However, the currency’s losses have been modest so far, with its direction remains closely tied to overall risk sentiment. Yen showed strength late last week, buoyed by the sharp selloff in US equity markets, where island reversal patterns emerged in S&P 500 and NASDAQ. Should this negative stock market sentiment persist, it could provide a fresh catalyst for Yen appreciation in the near term. Meanwhile, Kiwi is facing selling pressure, ranking among the weakest performer today so far. The disappointing services index reading from New Zealand added to the currency’s challenges. Expectations are firm for RBNZ to deliver another 50pbps rate cut next week. A significant factor influencing this expectation is RBNZ’s meeting calendar, as it will not convene again until mid-February 2025. This December/January gap could prompt the central bank to frontload further easing.... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 193.21; (P) 195.83; (R1) 197.37; More... Intraday bias in GBP/JPY stays on the downside despite today's weak recovery. Prior break of 55 D EMA (now at 195.23) argues that corrective rise from 180.00 has completed with three waves up to 199.79, after hitting rising channel resistance. Further decline would be seen to 193.45 resistance turned support. Decisive break there will target 183.70 next. For now, risk will stay on the downside as long as 198.43 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 21:30 | NZD | Business NZ PSI Oct | 46 | 45.7 | | 21:45 | NZD | PPI Input Q/Q Q3 | 1.90% | 1.00% | 1.40% | | 21:45 | NZD | PPI Output Q/Q Q3 | 1.50% | 0.90% | 1.10% | | 23:50 | JPY | Machinery Orders M/M Sep | -0.70% | 1.40% | -1.90% | | 10:00 | EUR | Eurozone Trade Balance (EUR) Sep | 7.9B | 11.0B | | 13:15 | CAD | Housing Starts Y/Y Oct | 239K | 224K | | 15:00 | USD | NAHB Housing Market Index Nov | 42 | 43 |
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