US Inflation Data Fuels More Risk-On Rally, Yen Surges After Ishibaâs LDP Leadership Win
Action Insight Mid-Day Report 9-27-24 |
US Inflation Data Fuels More Risk-On Rally, Yen Surges After Ishiba’s LDP Leadership Win |
Risk-on sentiment returned to global markets again in early US trading, driven by lower-than-expected inflation data. While annual PCE core inflation edged up to 2.7%, the monthly increase was a modest 0.1%. This tamer inflation growth suggests that underlying price pressures would, at least, not obstruct Fed's to another aggressive rate cut at its next meeting. However, upcoming non-farm payrolls and CPI data will still play a decisive role in Fed’s final decision. In Japan, Yen staged a sharp turnaround after Shigeru Ishiba unexpectedly secured leadership of the ruling Liberal Democratic Party, setting him on the path to become the next Prime Minister. Known for his hawkish monetary stance, Ishiba's ascent has intensified speculation that BoJ may implement another rate hike in December. However, the political landscape remains uncertain. There is a possibility that Ishiba may call for a snap general election to secure a stronger mandate from voters, and that could delay any BoJ action until 2025.... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 144.21; (P) 144.71; (R1) 145.31; More... USD/JPY's break of 142.89 minor support suggests that recovery fro 139.57 has completed at 146.48 already. Intraday bias is back on the downside for 139.57 low. Strong support is still expected from 139.26 to contain downside to bring another rebound. But decisive break there will carry larger bearish implications. On the upside, above 146.48 will resume the rebound to 38.2% retracement of 161.94 to 139.57 at 148.11. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
---|
23:30 | JPY | Tokyo CPI Y/Y Sep | 2.20% | 2.60% | 23:30 | JPY | Tokyo CPI Core Y/Y Sep | 2.00% | 2.00% | 2.40% | 23:30 | JPY | Tokyo CPI Core-Core Y/Y Sep | 1.60% | 1.60% | 06:45 | EUR | France Consumer Spending M/M Aug | 0.20% | -0.10% | 0.30% | 0.20% | 07:55 | EUR | Germany Unemployment Rate Sep | 6.00% | 6.00% | 6.00% | 07:55 | EUR | Germany Unemployment Change Sep | 17K | 9K | 2K | 09:00 | EUR | Eurozone Economic Sentiment Sep | 96.2 | 96.5 | 96.6 | 96.5 | 09:00 | EUR | Eurozone Industrial Confidence Sep | -10.9 | -9.8 | -9.7 | -9.9 | 09:00 | EUR | Eurozone Services Sentiment Sep | 6.7 | 5.6 | 6.3 | 6.4 | 09:00 | EUR | Eurozone Consumer Confidence Sep F | -12.9 | -12.9 | -12.9 | 12:30 | CAD | GDP M/M Jul | 0.20% | 0.10% | 0.00% | 12:30 | USD | Personal Income M/M Aug | 0.20% | 0.40% | 0.30% | 12:30 | USD | Personal Spending Aug | 0.20% | 0.30% | 0.50% | 12:30 | USD | PCE Price Index M/M Aug | 0.10% | 0.10% | 0.20% | 12:30 | USD | PCE Price Index Y/Y Aug | 2.20% | 2.30% | 2.50% | 12:30 | USD | Core PCE Price Index M/M Aug | 0.10% | 0.20% | 0.20% | 12:30 | USD | Core PCE Price Index Y/Y Aug | 2.70% | 2.70% | 2.60% | 12:30 | USD | Goods Trade Balance (USD) Aug P | -94.3B | -100.6B | -102.7B | 12:30 | USD | Wholesale Inventories Aug P | 0.20% | 0.20% | 0.20% | 14:00 | USD | Michigan Consumer Sentiment Sep F | 69 | 69 |
|
|
|