Published at 02:27 (GMT) 28 Mar
PM Shinzo Abe says rethinking GPIF portfolio part of investment improvements. Important for Japan to limit risk of long-term Japan yields jump. Will do everything to ensure bond market stability. To keep working on maintaining trust in Japan bonds/ JGBs.
On FX, more pressure from PM Abe on the mammoth GPIF to be more aggressive in its portfolio allocation to enhance returns. Pressure to shift funds into more aggressive sectors - stocks and overseas assets? Could see new waves of GPIF, pension funds outflows in new FY14/15 from April 1 next week. As PM Shinzo Abe, government hope the shift for greater returns, will also help cushion the impact of the sales tax hike?
USD/JPY, Cross/JPY could see more upside on GPIF, pension funds, public funds, lifers demand for overseas assets. As markets continue to wait for signs of the expected "huge" portfolio shift/ capital flows upon "Abenomics". USD/JPY at 102.15-20, bids at 102 lows, weak stops above 102.30-35. More offers 102.40-50, stops above 102.55-60.
AUD/JPY up at 94.95-00, up from 94.60-65 earlier, at fresh 5-month highs. Capped by speculation of good options related sales ahead of 95.00 Option barriers. But stoploss building above 95.05-10. 2-way interest from Japanese banks and funds. But real interest to buy on dips for more upside. Eye 95.50/96.00. As USD/JPY eye 102.50. 103 options. WL
Recommended Content
Editors’ Picks
Australian Dollar remains tepid after mixed Chinese data, Fedspeak awaited
The Australian Dollar extends its losses after mixed economic data from China on Friday. The Australian Dollar struggles as Australia’s 10-year bond yield has dropped to a monthly low of 4.2%. China’s Retail Sales increased for the consecutive 15th month but the softest gain in this sequence. The US Dollar has rebounded as the Fed remains cautious about inflation and potential rate cuts in 2024.
EUR/USD: Could FOMC Minutes provide fresh clues?
The EUR/USD pair advanced for a fourth consecutive week, comfortably trading around 1.0860 ahead of the close. Progress had been shallow, as the pair is up roughly 250 pips from the year low of 1.0600 posted mid-April.
Gold looks to extend uptrend once it confirms $2,400 as support
Gold price continued to push higher last week and rose above $2,400 on Friday, gaining nearly 2% for the week. Investors will continue to scrutinize comments from Fed officials this week and look for fresh hints on the timing of the policy pivot in the minutes of the April 30-May 1 meeting.
AI tokens could really ahead of Nvidia earnings
Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report.
Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.