Yen's Struggle, Dollar's Strength, and Sterling's Anticipation
| Action Insight Daily Report 5-9-24 |
Yen's Struggle, Dollar's Strength, and Sterling's Anticipation |
Yen continues to underperform as the worst for the week at this point, even in face of Japan's verbal interventions. As Yen breached 155 mark against Dollar again, Japanese Finance Minister Shunichi Suzuki reiterated his concerns over the detrimental impacts of a weakening Yen and promised a "thorough response" in the forex markets. Despite these efforts and a hawkish shift in BoJ's Summary of Opinions, Yen has seen no significant support. On the other hand, Dollar remains the strongest performer for the week, albeit without enough momentum to break through key technical levels against other major currencies. Traders appear cautious, likely awaiting next week's US CPI data before making significant moves. FOMC is united on the need for more favorable data before considering interest rate cuts. However, there is a clear division among its members regarding the timing and extent of rate reductions this year... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 193.59; (P) 194.05; (R1) 194.83; More.. Intraday bias in GBP/JPY is mildly on the upside with break of 55 4H EMA. Pull back from 200.53 should have completed at 191.34. Rebound from there is seen as the second leg of the corrective pattern. Further rise would be seen back to 197.40 resistance. On the downside, however, break of 192.97 minor support will turn intraday bias neutral again first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | RICS Housing Price Balance Apr | -5% | 4% | -4% | -5% | | 23:50 | JPY | BoJ Summary of Opinions | | 03:00 | CNY | Trade Balance (USD) Apr | 72.4B | 81.4B | 58.6B | | 05:00 | JPY | Leading Economic Index Mar P | 111.3 | 111.8 | | 11:00 | GBP | BoE Interest Rate Decision | 5.25% | 5.25% | | 11:00 | GBP | MPC Official Bank Rate Votes | 0--0--9 | 0--1--8 | | 12:30 | USD | Initial Jobless Claims (May 3) | 210K | 208K | | 14:30 | USD | Natural Gas Storage | 87B | 59B |
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