Intra-Day Market Moving News and Views
23 Jan 2015 02:08GMT
USD/JPY - ...... Although the greenback rose to 118.82 in Tokyo morning due to the rise in Nikkei-225 index (up 156 points to 17485), selling interest below Tuesday's high at 118.87 capped dlr's upside somewhat. Offers are now tipped at 118.80-85 with mixture of offers and stops seen at 119.00.
On the downside, bids are located at 118.35-30 and more at 118.10-00.
Although the Bank of Japan kept its target for monetary base expansion unchanged this week after it boosted an already unprecedented bond-buying program in October 2014 and cut its inflation forecast for fiscal 2015 to 1.0 percent from 1.7 percent amid plunging oil prices, market players are now speculating BOJ may add stimulus in its next policy meeting after yesterday's ECB massive bond-buying program.
Reuters reported Japanese manufacturers began the new year on a strong note as domestic and overseas orders picked up, a survey showed on Friday, suggesting the economy is shrugging off a slump in consumer spending last year that triggered a recession.
The Markit/JMMA flash Japan Manufacturing PMI rose to a seasonally adjusted 52.1 in Jan from a final 52.0 in December.
Japan's economy is expected to grow an annualised 3.2% in the 4th quarter of last year and an annualised 2.1% this quarter, rebounding fm a mild recession after a sales tax increase last Apr, according to a Reuters poll.
Economists expect growth in consumer spending, exports and capital expenditure to drive growth this year.
A decline in oil prices could also help lower fuel costs for Japan n give the economy a further boost.
Manufacturers also hired new staff for the 4th month running, the survey showed.
Comment from Japan's FINMIN, quote:
'praise ecb for taking steps to support economy, avoid deflation'
'appropriate for boj to change its forecasts in response to changing economic environment'
'boj never said it would meet inflation target exactly in fiscal 2015'
Friday will see the release of Japan's Manufacturing PMI, China's HSBC Manufacturing PMI, Markit Manufacturing PMI and Service PMI for France, Germany and euro zone, Italy's Trade Balance, U.K.'s Retail Sales, Canada's Retail sales, CPI, U.S.'s Existing Home Sales, Markit manufacturing PMI and Leading Index Change.
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