Yen's Decline Persists Following Japan CPI Release, Dollar Upholds Its Lead
Action Insight Daily Report 1-19-24 |
Yen's Decline Persists Following Japan CPI Release, Dollar Upholds Its Lead |
Yen' decline resume today after release of Japan's latest CPI data, which suggests that BoJ is not be under immediate pressure to exit its negative interest rate policy. . Economists have noted a crucial aspect of Japan's inflation dynamics: while cost-push inflation is clearly easing, the transition to demand-pull inflation remains unconfirmed. The market's attention is now turning to BoJ's meeting next week, where new economic forecasts will be published. Although many analysts consider April as the most likely month for a rate hike, this remains contingent on the upcoming projections. Amidst the Yen's decline, USD/JPY is approaching 150 psychological level, prompting verbal interventions from Japanese financial authorities. Finance Minister Shunichi Suzuki reiterated the importance of stable currency movements that reflect economic fundamentals. He assured that the government would continue to closely monitor forex markets. However, these comments have not provided a sustainable boost to Yen... |
USD/JPY Daily Outlook Daily Pivots: (S1) 147.78; (P) 148.05; (R1) 148.44; More... USD/JPY's rally resumed after brief retreat and intraday bias is back on the upside. Current rise from 140.25 should target a retest on 151.89/93 key resistance zone. On the downside, below 147.64 minor support will turn intraday bias neutral again and bring consolidations, before staging another rise. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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21:30 | NZD | Business NZ PMI Dec | 43.1 | 46.7 | 46.5 | 23:30 | JPY | National CPI Y/Y Dec | 2.60% | 2.80% | 23:30 | JPY | National CPI ex Fresh Food Y/Y Dec | 2.30% | 2.30% | 2.50% | 23:30 | JPY | National CPI ex Food & Energy Y/Y Dec | 3.70% | 3.80% | 04:30 | JPY | Tertiary Industry Index M/M Nov | -0.70% | 0.20% | -0.80% | -0.20% | 07:00 | GBP | Retail Sales M/M Dec | -0.50% | 1.30% | 07:00 | EUR | Germany PPI M/M Dec | -0.50% | -0.50% | 07:00 | EUR | Germany PPI Y/Y Dec | -7.90% | -7.90% | 07:30 | CHF | Producer and Import Prices M/M Dec | -0.60% | -0.90% | 07:30 | CHF | Producer and Import Prices Y/Y Dec | -1.30% | 13:30 | CAD | Retail Sales M/M Nov | 0.00% | 0.70% | 13:30 | CAD | Retail Sales ex Autos M/M Nov | -0.10% | 0.60% | 15:00 | USD | Existing Home Sales Dec | 3.82M | 3.82M | 15:00 | USD | Michigan Consumer Sentiment Index Jan P | 69.6 | 69.7 |
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