Yen Rally Pauses as BoJ Signals Bond Market Intervention, Dollar Soft
| Action Insight Daily Report 2-21-25 |
Yen Rally Pauses as BoJ Signals Bond Market Intervention, Dollar Soft |
Yen volatility remains a key theme in Asian session today. Stronger-than-expected Japanese inflation data provided further justification for BoJ’s ongoing policy normalization, reinforcing speculation that the central bank may hike rates sooner than previously anticipated. However, Yen’s rally lost momentum after Japan’s 10-year JGB yield pulled back sharply. This dip in yield came after BoJ Governor Kazuo Ueda told parliament that the central bank is ready to step in to stabilize markets if yields rise too sharply, hinting at possible intervention in the bond market to smooth fluctuations. Despite this pullback, there are no clear signs of reversal in both JGB yields and Yen. Market participants may continue to position for an earlier BoJ rate hike, given the persistent inflationary pressures and rising wage expectations in Japan.... |
EUR/JPY Daily Outlook Daily Pivots: (S1) 156.30; (P) 157.15; (R1) 157.98; More... EUR/JPY recovered ahead of 155.72 support and intraday bias is turned neutral again. Overall outlook is unchanged that consolidation pattern from 154.40 might extend further. Above 185.35 minor resistance will bring stronger rebound to 161.17. Nevertheless, firm break of 155.72 support will be a strong sign that whole fall from 175.41 is resuming. Retest of 154.40 support should be seen next and firm break there should confirm. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Trade Balance (NZD) Jan | -486M | 225M | 219M | 94M | | 22:00 | AUD | Manufacturing PMI Feb P | 50.6 | 50.2 | | 22:00 | AUD | Services PMI Feb P | 51.4 | 51.2 | | 23:50 | JPY | CPI Y/Y Jan | 4.00% | 3.60% | | 23:50 | JPY | CPI Core Y/Y Jan | 3.20% | 3.10% | 3.00% | | 23:50 | JPY | CPI Core-Core Y/Y Jan | 2.50% | 2.40% | | 00:01 | GBP | GfK Consumer Confidence Feb | -20 | -22 | -22 | | 00:30 | JPY | Manufacturing PMI Feb P | 48.9 | 49 | 48.7 | | 00:30 | JPY | Services PMI Feb P | 53.1 | 53 | | 07:00 | GBP | Retail Sales M/M Jan | 0.30% | -0.30% | | 07:00 | GBP | Public Sector Net Borrowing (GBP) Jan | -20.5B | 17.8B | | 08:15 | EUR | France Manufacturing PMI Feb P | 45.3 | 45 | | 08:15 | EUR | France Services PMI Feb P | 49 | 48.2 | | 08:30 | EUR | Germany Manufacturing PMI Feb P | 45.6 | 45 | | 08:30 | EUR | Germany Services PMI Feb P | 52.6 | 52.5 | | 09:00 | EUR | Eurozone Manufacturing PMI Feb P | 47.1 | 46.6 | | 09:00 | EUR | Eurozone Services PMI Feb P | 51.5 | 51.3 | | 09:30 | GBP | Manufacturing PMI Feb P | 48.5 | 48.3 | | 09:30 | GBP | Services PMI Feb P | 51 | 50.9 | | 13:30 | CAD | Retail Sales M/M Dec | 1.60% | 0% | | 13:30 | CAD | Retail Sales ex Autos M/M Dec | 0.40% | -0.70% | | 14:45 | USD | Manufacturing PMI Feb P | 51.3 | 51.2 | | 14:45 | USD | Services PMI Feb P | 53 | 52.9 | | 15:00 | USD | Existing Home Sales M/M Jan | 4.17M | 4.24M | | 15:00 | USD | Michigan Consumer Sentiment Index Jan F | 67.8 | 67.8 |
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