Yen Jumps as Strong PMI Boosts BoJ Hike Hopes; Canadian Dollar Eyes BoC Cut
| Action Insight Mid-Day Report 7-23-24 |
Yen Jumps as Strong PMI Boosts BoJ Hike Hopes; Canadian Dollar Eyes BoC Cut |
Yen's rally accelerates again in Asian session today, driven by stronger-than-expected PMI services data, which bolsters the argument for a BoJ rate hike next week. While opinions vary on the exact timing of the rate move, with some economists forecasting a move in September or October, all would agree that an early hike this month is a distinct possibility. Reports indicate that the BoJ board might delay the decision until the last minute, contingent on retail sales data scheduled on the same day to confirm if this year's substantial wage hikes are boosting consumption. The broader currency markets reflect a risk-off sentiment. Dollar, following Yen, ranks as the second strongest currency for the week, while Swiss Franc holds the third position. In contrast, Australian Dollar remains the weakest, followed by New Zealand Dollar and Canadian Dollar, which awaits today's BoC rate cut decision. Euro and Sterling are positioned in the middle... |
USD/JPY Daily Outlook Daily Pivots: (S1) 155.06; (P) 156.08; (R1) 156.60; More... USD/JPY's fall from 161.94 resumed by breaking through 155.36 today and intraday bias is back on the downside. Further decline should be seen to 38.2% retracement of 140.25 to 161.94 at 153.65. Some support could be seen there to bring rebound, at least on first attempt. Risk will now stay on the downside as long as 157.85 resistance holds, even in case of strong recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:00 | AUD | Manufacturing PMI Jul P | 47.4 | 47.2 | | 23:00 | AUD | Services PMI Jul P | 50.8 | 51.2 | | 00:30 | JPY | Manufacturing PMI Jul P | 49.2 | 50.5 | 50 | | 00:30 | JPY | Services PMI Jul P | 53.9 | 49.4 | | 06:00 | EUR | Germany GfK Consumer Confidence Aug | -21.1 | -21.8 | | 07:15 | EUR | France Manufacturing PMI Jul P | 45.9 | 45.4 | | 07:15 | EUR | France Services PMI Jul P | 49.7 | 49.6 | | 07:30 | EUR | Germany Manufacturing PMI Jul P | 44.5 | 43.5 | | 07:30 | EUR | Germany Services PMI Jul P | 53.5 | 53.1 | | 08:00 | EUR | Eurozone Manufacturing PMI Jul P | 46.3 | 45.8 | | 08:00 | EUR | Eurozone Services PMI Jul P | 52.9 | 52.8 | | 08:30 | GBP | Manufacturing PMI Jul P | 51.1 | 50.9 | | 08:30 | GBP | Services PMI Jul P | 52.5 | 52.1 | | 12:30 | CAD | New Housing Price Index M/M Jun | 0.10% | 0.20% | | 12:30 | USD | Goods Trade Balance (USD) Jun P | -98.0B | -99.4B | | 12:30 | USD | Wholesale Inventories Jun P | 0.50% | 0.60% | | 13:45 | CAD | BoC Interest Rate Decision | 4.50% | 4.75% | | 13:45 | USD | Manufacturing PMI Jul P | 51.5 | 51.6 | | 13:45 | USD | Services PMI Jul P | 54.5 | 55.3 | | 14:00 | USD | New Home Sales M/M Jun | 643K | 619K | | 14:30 | CAD | BoC Press Conference | | 14:30 | USD | Crude Oil Inventories | -2.6M | -4.9M |
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