Yen Recovers as BoJ's Ueda Reiterates July Hike Possibility, But Gains Capped by Uncertainty
| Action Insight Daily Report 6-18-24 |
Yen Recovers as BoJ's Ueda Reiterates July Hike Possibility, But Gains Capped by Uncertainty |
Japanese Yen had a modest recovery in Asian session, accompanied by an uptick in 10-year JGB yield and Nikkei. This comes as BoJ Governor Kazuo Ueda continued to prepare the markets for more tightening ahead, by reiterating that another rate hike in July is a possibility. Additionally, Ueda emphasized the impact of the weak Yen on import prices and overall inflation. However, opinions are divided on the timing of BoJ's next rate hike after the historical move in March. Thus, Yen's recovery might remain limited until there is more clarity. Simultaneously, Australian Dollar edged higher following RBA's decision to keep interest rates unchanged at 4.35%, a move that was widely anticipated by the markets. RBA maintained its flexible stance, stating it is "not ruling anything in or out" regarding future rate changes. It believed that the board would need to wait at least until when Q2 inflation data is available before having a clearer idea on even the direction of the next move in interest rate, not to mention the timing... |
USD/JPY Daily Outlook Daily Pivots: (S1) 157.27; (P) 157.62; (R1) 158.07; More... USD/JPY is staying in tight range below 158.25 temporary top and intraday bias remains neutral. Further rally would be in favor as long as 154.53 support holds. Break of 158.25 will resume the choppy rise from 151.86 towards 160.20 high. But upside should be limited there, at least on first attempt. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 04:30 | AUD | RBA Interest Rate Decision | 4.35% | 4.35% | 4.35% | | 09:00 | EUR | Eurozone CPI Y/Y May F | 2.60% | 2.60% | | 09:00 | EUR | Eurozone CPI Core Y/Y May F | 2.90% | 2.90% | | 09:00 | EUR | Germany ZEW Economic Sentiment Jun | 50 | 47.1 | | 09:00 | EUR | Germany ZEW Current Situation Jun | -69 | -72.3 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment Jun | 47.2 | 47 | | 12:30 | USD | Retail Sales M/M May | 0.30% | 0.00% | | 12:30 | USD | Retail Sales ex Autos M/M May | 0.20% | 0.20% | | 13:15 | USD | Industrial Production M/M May | 0.40% | 0.00% | | 13:15 | USD | Capacity Utilization May | 78.60% | 78.40% | | 14:00 | USD | Business Inventories Apr | 0.30% | -0.10% |
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