Intra-Day Market Moving News and Views
21 Nov 2014 07:51GMT
USD/JPY - ...... .Japan PM Adviser Hamada said, quote:
'Abenomics working well but negative impact from April sales tax hike stronger than expected;
dlr/yen at Y120 positive for overall Japan economy but steps needed to ease impact on consumers;
consumer inflation around 1.5% is acceptable under current jobs mkt situation;
corporate tax rate should be cut to closer to 20%.'
The greenback briefly retreated to 117.60 after his comments. Earlier, dlr rebounded to 117.98 after intra-day sharp sell off to a fresh 1-week low at 117.36 in Tokyo morning as Nikkei turned from negative to positive territory and ended the day up 0.33% at 17357.
Bids are noted at 117.45/40 and then 117.25/20 with mixture of bids and stops emerging below 117.00, whilst offers are located at 117.80-90 and more at 118.15/20 and 118.30/35 with stops placed just above 118.50.
Earlier news reported that PM Shinzo Abe dissolved parliament's lower house for an election on Friday, seeking a fresh mandate for his struggling Abenomics revival strategy just two years after he returned to power promising that "Japan is Back".
The speaker of the lower house read the dissolution proclamation to a plenary session of the chamber.
No election for parliament's lower house needed to be held until late 2016. But Abe is hoping to cement his grip on power before his support ratings, now below 40 percent in some surveys but still sturdy by Japanese standards, slip further.
The date of the election, expected to be on Dec. 14, will officially be set at a cabinet meeting in the afternoon.