Japan's Stock Market Breaks Through the "Iron Coffin Lid", Yen Broadly Lower
| Action Insight Daily Report 2-22-24 |
Japan's Stock Market Breaks Through the "Iron Coffin Lid", Yen Broadly Lower |
Japanese Yen had a broad-based declined in Asian session today, while Nikkei extended its recent up trend, momentarily reaching a new record high, ending the 34-year wait. This milestone is of considerable psychological significance for Japan, symbolizing the end of over three decades of economic stagnation ensued after the burst of the country's stock and property bubble. The term "iron coffin lid" has often been used to describe the elusive barrier that is unreachable, making today's breakthrough a momentous occasion for Japanese investors and the broader economy. Despite recent weak PMI data and anticipation of BoJ rate hike later in the year, Japanese investors appear undeterred. BoJ Governor Kazuo Ueda continued his actively communicating with the markets, noting today that trend inflation is "heightening" and that service prices continue to "rise moderately", reassuring investors of the central bank's commitment to making "appropriate monetary policy decisions." The latest Reuters poll indicates that 83% of economists expect BoJ to end its negative interest rate policy in April, with 76% predicting the abandonment of yield curve control at the same meeting. |
GBP/JPY Daily Outlook Daily Pivots: (S1) 189.42; (P) 189.68; (R1) 190.21; More... GBP/JPY's up trend is trying to resume by breaking through 190.05. Intraday bias is back on the upside for 61.8% projection of 178.71 to 188.90 from 185.21 at 191.50. On the downside, below 189.05 minor support will turn intraday bias neutral and bring consolidations again, before staging another rally. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Trade Balance (NZD) Jan | -976M | -200M | -323M | -368M | | 22:00 | AUD | Manufacturing PMI Feb P | 47.7 | 50.1 | | 22:00 | AUD | Services PMI Feb P | 52.8 | 49.1 | | 00:30 | JPY | Manufacturing PMI Feb P | 47.2 | 48.2 | 48 | | 00:30 | JPY | Services PMI Feb P | 52.5 | 53.1 | | 08:15 | EUR | France Manufacturing PMI Feb P | 44 | 43.1 | | 08:15 | EUR | France Services PMI Feb P | 45.6 | 45.4 | | 08:30 | EUR | Germany Manufacturing PMI Feb P | 46.1 | 45.5 | | 08:30 | EUR | Germany Services PMI Feb P | 48 | 47.7 | | 09:00 | EUR | Eurozone Manufacturing PMI Feb P | 47.1 | 46.6 | | 09:00 | EUR | Eurozone Services PMI Feb P | 48.7 | 48.4 | | 09:30 | GBP | Manufacturing PMI Feb P | 47.1 | 47 | | 09:30 | GBP | Services PMI Feb P | 54.4 | 54.3 | | 10:00 | EUR | Eurozone CPI Y/Y Jan F | 2.80% | 2.80% | | 10:00 | EUR | Eurozone CPI Core Y/Y Jan F | 3.30% | 3.30% | | 12:30 | EUR | ECB Meeting Accounts | | 13:30 | CAD | Retail Sales M/M Dec | 0.80% | -0.20% | | 13:30 | CAD | Retail Sales ex Autos M/M Dec | 0.70% | -0.50% | | 13:30 | USD | Initial Jobless Claims (Feb 16) | 217K | 212K | | 14:45 | USD | Manufacturing PMI Feb P | 50.2 | 50.7 | | 14:45 | USD | Services PMI Feb P | 52 | 52.5 | | 15:00 | USD | Existing Home Sales Jan | 3.95M | 3.78M | | 15:30 | USD | Natural Gas Storage | -59B | -49B | | 16:00 | USD | Crude Oil Inventories | 3.9M | 12.0M |
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