Intra-Day Market Moving News and Views
27 Feb 2015 02:37GMT
USD/JPY - ...... Despite yesterday's brief drop to 118.68 in European morning, the greenback rebounded strongly to 119.51 due to dlr's broad-based strength after hawkish comments Federal Reserve's James Bullard together with upbeat U.S. economic data.
Bids are now located at 119.20-15 and more at 119.05-00 with some stops seen below 119.00.
On the upside, offers are tipped at 119.50 and more at 119.70-80.
Reuters reported Japanese households cut spending more than expected and retail sales fell for the first time in 7 months in Jan, data showed on Friday, a sign the central bank's radical stimulus has yet to convince consumers that inflation will take hold.
Factory output jumped in January as exports rebounded on solid U.S. and Asia demand, but manufactures see output rising only slightly in the current month and then slumping in March, adding to evidence of an uneven economic recovery.
The soft consumption is a headache for the BoJ, which hopes its aggressive money printing will fuel expectations that prices will rise ahead and prompt households to spend more now.
Yesterday BOJ Gov Kuroda said that they won't tolerate price rises exceeding beyond price stability goal and there is no plan to change Monetary Policy in response to sales tax hike scheduled In 2017.
Data to be released on Friday:
Japan inflation, unemployment rate, retail sales, industrial output, housing starts, construction orders, UK consumer confidence, France producer prices, Swiss KOF indicator, Italy CPI, Germany CPI, import price index, U.S. GDP, Chicago PMI and pending home sales.
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