Intra-Day News and Views (USD/JPY) & data to be released today: Oct 20, 2014

Intra-Day Market Moving News and Views

20 Oct 2014

USD/JPY .......Statement at a quarterly meeting of the central bank's regional branch managers BoJ Governor Haruhiko Kuroda said, quote:
-Japan's economy continues to recover moderately as a trend
- effect of sales tax hike on economy likely to gradually ease
-Japan banking system maintaining stability
-QQE exerting intended effects
-BOJ will maintain qqe for as long as needed to achieve 2 pct inflation in stable manner
-BOJ will adjust policy as needed, looking at upside, downside risks to economy, prices
-some weakness seen in output

The main driver of today's gap-up open on the dlr in NZ was a w/end report by Bloomberg citing source from the Nikkei.

Bloomberg reported Japan's $ 1.2 tln retirement fund will increase its allocation target for shares to about 25% from 12%, the Nikkei newspaper reported today without attribution.

Nikkei also said GPIF will also boost its holdings of foreign bonds n stocks to about a combined 30% from 23%, while reducing domestic notes to the 40% level from 60%.

Takatoshi Ito, a member of the panel said that the GPIF would be "stupid? to announce its new investment strategy before adjusting asset allocations. Publishing targeted weightings in advance would move markets, forcing the fund to buy at highs and sell at lows, he said in an interview on Oct. 14.

The fund's asset review could come as late as December, as GPIF officials, members of its investment committee n the health ministry have different views on the best timing and approach, Ito said.

Data to be released this week:

UK Rightmove house prices, Germany producer prices, EU current account, Italy industrial orders, industrial sales and Canada wholesale trade on Monday.

Australia CB leading indicator, Westpac leading index, RBA minutes, China GDP, retail sales, industrial output, Japan industry index, Swiss trade balance, UK PSNB, PSNCR, U.S. Redbook retail sales and existing home sales on Tuesday.

Japan imports, exports, trade balance, Australia inflation, BoE minutes, UK BoE MPC vote, Canada retail sales, BoC rate decision, U.S. weekly earnings and CPI on Wednesday.

New Zealand CPI, Japan manufacturing PMI, China HSBC manufacturing PMI, France business climate, manufacturing PMI, services PMI, Germany manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, Italy trade balance, UK retail sales, CBI trends, U.S. home price index, jobless claims, manufacturing PMI, leading index and consumer confidence on Thursday.

New Zealand trade balance, imports, exports, China house prices, Germany consumer sentiment, Italy retail sales, UK GDP and U.S. new home sales on Friday.