Hawkish BoJ Fuels Yen Surge, Dollar Awaits Crucial PCE Inflation Insights
| Action Insight Daily Report 2-29-24 |
Hawkish BoJ Fuels Yen Surge, Dollar Awaits Crucial PCE Inflation Insights |
Japanese Yen rallied broadly in Asian session, energized by hawkish remarks of a BoJ official. These remarks served as a potent reminder to the markets of two critical points: Firstly, BoJ is poised to hike interest rates, buoyed by positive developments in wage negotiations; secondly, while April is viewed as the more likely timing for this move, a March hike cannot not been entirely ruled out. This news initially led to a slight dip in Nikkei, though it managed to recover almost all of its losses by the afternoon, signaling a positive reception among investors to the anticipated policy tightening. Elsewhere in the currency markets, Australian Dollar trading as the second-strongest performer of the day, partly supported by rebound in Chinese stock markets. However, this could be a temporary adjustment, as Aussie recovers from its post-CPI losses. Similarly, New Zealand Dollar is regaining some ground lost following RBNZ rate decision yesterday.... |
USD/JPY Daily Outlook Daily Pivots: (S1) 150.43; (P) 150.64; (R1) 150.91; More... USD/JPY falls notably today but stays above 149.51 minor support. Intraday bias remains neutral first. Considering bearish divergence condition in 4H MACD, firm break of 149.51 should confirm short term topping at 150.87. Intraday bias will then be back on the downside for channel support (now at 148.04), even as a corrective move. On the upside, though, break of 150.87 will resume the rally from 140.25 to retest 151.89/93 key resistance zone. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Industrial Production M/M Jan P | -7.50% | -7.30% | 1.40% | | 23:50 | JPY | Retail Trade Y/Y Jan | 2.30% | 2.00% | 2.30% | | 00:00 | NZD | ANZ Business Confidence Feb | 34.7 | 36.6 | | 00:30 | AUD | Retail Sales M/M Jan | 1.10% | 1.70% | -2.70% | -2.10% | | 00:30 | AUD | Private Sector Credit M/M Jan | 0.40% | 0.40% | 0.40% | | 00:30 | AUD | Private Capital Expenditure Q4 | 0.80% | 0.40% | 0.60% | 0.30% | | 05:00 | JPY | Housing Starts Y/Y Jan | -7.50% | -7.50% | -4.00% | | 07:00 | EUR | Germany Retail Sales M/M Jan | 0.50% | -1.60% | | 07:45 | EUR | France GDP Q/Q Q4 | 0.00% | 0.00% | | 08:00 | CHF | KOF Economic Barometer Feb | 102 | 101.5 | | 08:00 | CHF | GDP Q/Q Q4 | 0.20% | 0.30% | | 08:55 | EUR | Germany Unemployment Change Feb | 10K | -2K | | 08:55 | EUR | Germany Unemployment Rate Feb | 5.80% | 5.80% | | 09:30 | GBP | M4 Money Supply M/M Jan | 0.30% | 0.50% | | 13:00 | EUR | Germany CPI M/M Feb P | 0.50% | 0.20% | | 13:00 | EUR | Germany CPI Y/Y Feb P | 2.60% | 2.90% | | 13:30 | CAD | GDP M/M Dec | 0.20% | 0.20% | | 13:30 | USD | Personal Income M/M Jan | 0.50% | 0.30% | | 13:30 | USD | Personal Spending Jan | 0.20% | 0.70% | | 13:30 | USD | PCE Price Index M/M Jan | 0.30% | 0.20% | | 13:30 | USD | PCE Price Index Y/Y Jan | 2.40% | 2.60% | | 13:30 | USD | Core PCE Price Index M/M Jan | 0.40% | 0.20% | | 13:30 | USD | Core PCE Price Index Y/Y Jan | 2.80% | 2.90% | | 13:30 | USD | Initial Jobless Claims (Feb 23) | 210K | 201K | | 14:45 | USD | Chicago PMI Feb | 47.9 | 46 | | 15:00 | USD | Pending Home Sales M/M Jan | 1.00% | 8.30% | | 15:30 | USD | Natural Gas Storage | -86B | -60B |
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