Intra-day Market Moving News and Views
28 Jan 2016 01:12GMT
USD/JPY - ..... Reuters just reported Japan's retail sales fell more than expected in December, data showed on Thursday, suggesting that sluggish household spending will keep fourth-quarter economic growth subdued.
While many analysts expect the Bank of Japan to hold off on additional monetary easing at its two-day rate review ending on Friday, the weak data will likely keep policymakers under pressure to do more to reflate a fragile economic recovery.
Retail sales fell 1.1 percent in December from a year earlier to mark the second straight month of declines, more than a median market forecast for a 0.1 percent decline. Japan's economy has emerged from recession but growth remains subdued as sluggish emerging market demand and slow wage growth weigh on exports and private consumption.
Policymakers hope that the windfall from falling energy prices will nudge households to boost spending, though some analysts warn that the economy may have suffered a contraction in October-December on weak household spending.
The global market rout has also heightened pressure on the BOJ to expand monetary stimulus, though many central bankers prefer to stand pat this week as they cling to the view Japan's economy continues to recover moderately.
The retail sales data foreshadow a run of indicators due on Friday, including inflation and household spending.
Data to be released on Thursday:
New Zealand exports, imports, trade balance, Japan retail trade, Australia import price index, export price index, Italy wage inflation, U.K. GDP, CBI distributive trade, Euro zone services sentiment, consumer confidence, industrial confidence, economic sentiment indicator, business climate, Germany CPI, Harmonised Index of Consumer Prices, U.S. initial jobless claims, durable goods and pending home sales.
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