Yen Inches Upward as Japan's CPI Fuels March BoJ Hike Talks
| Action Insight Daily Report 2-27-24 |
Yen Inches Upward as Japan's CPI Fuels March BoJ Hike Talks |
Japanese Yen found modest strength in Asian session today, lifted by stronger than expected consumer inflation data from Japan. At the same time, two-year yield climbed to its highest point since 2011 while Nikkei is steady. The data intensified speculations around BoJ's move to abandon its negative interest rate policy. Almost all economists are expecting a rate hike in the first half of the year, with April still tagged as the most probable timing. However, the CPI raises the chance of an expedited move in March. Despite today's recovery, it's premature to declare bullish reversal for Yen. BoJ Governor Kazuo Ueda has indicated that, even with the shift away from negative rates, the monetary policy stance will remain accommodative, and any tightening efforts are expected to unfold gradually. Additionally, the prospect of other major central banks, such as Fed, postponing policy easing could maintain a significant yield gap, thereby restraining any potential Yen rally... |
USD/JPY Daily Outlook Daily Pivots: (S1) 150.39; (P) 150.61; (R1) 150.94; More... USD/JPY retreats mildly ahead of 150.87 resistance as consolidation continues. Intraday bias remains neutral and outlook is unchanged. In case of deeper retreat, downside should be contained by 148.79 resistance turned support to bring rebound. On the upside, break of 150.87 will resume 140.25 to 151.89/93 key resistance zone. Decisive break there will confirm larger up trend resumption of 155.50 projection level next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | National CPI Y/Y Jan | 2.20% | 2.60% | | 23:30 | JPY | National CPI ex Fresh Food Y/Y Jan | 2.00% | 1.90% | 2.30% | | 23:30 | JPY | National CPI ex Food & Energy Y/Y Jan | 3.50% | 3.70% | | 00:01 | GBP | BRC Shop Price Index Y/Y Jan | 2.50% | 2.90% | | 07:00 | EUR | Germany Gfk Consumer Confidence Mar | -29 | -29.7 | | 09:00 | EUR | Eurozone M3 Money Supply Y/Y Jan | 0.20% | 0.10% | | 13:30 | USD | Durable Goods Orders Jan | -4.40% | 0.00% | | 13:30 | USD | Durable Goods Orders ex Transport Jan | 0.30% | 0.50% | | 14:00 | USD | S&P/CS Composite-20 HPI y/y Dec | 6.00% | 5.40% | | 14:00 | USD | Housing Price Index M/M Dec | 0.10% | 0.30% | | 15:00 | USD | Consumer Confidence Feb | 114.9 | 114.8 |
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