Yen Rises on Strong Wage Data, Gold Continues March to 3000
| Action Insight DailyReport 2-5-25 |
Yen Rises on Strong Wage Data, Gold Continues March to 3000 |
Japanese Yen gained significant ground in the Asian session, supported by stronger-than-expected nominal wage growth, which bolstered the likelihood of further BoJ rate hikes. Additionally, continued rise in real wages for the second consecutive month, despite being largely driven by seasonal bonuses, adds to the argument that wage pressures could help sustain inflation near the 2% target. Supporting this outlook, BoJ monetary affairs director Kazuhiro Masaki told parliament that the central bank is prepared to continue adjusting monetary support and raising rates if underlying inflation progresses toward its 2% target. These remarks reaffirm the expectation that Japan’s interest rate normalization will proceed gradually but steadily this year. While Yen leads gains in the forex market, overall sentiment is mixed, with trade war concerns temporarily fading into the background. Canadian Dollar is currently the strongest performer this week, followed by Yen and Swiss Franc. Dollar lags behind as the weakest, joined by Euro and New Zealand Dollar. Sterling and Australian Dollar are treading a middle ground.... |
USD/JPY Daily Outlook Daily Pivots: (S1) 153.84; (P) 154.68; (R1) 155.18; More... USD/JPY's fall from 158.86 short term top resumed by breaking through 153.70 and intraday bias is back on the downside. Deeper decline should be seen to 38.2% retracement of 139.57 to 158.86 at 151.49. Strong support could be seen from there to bring rebound. But further fall will remain in favor as long as 155.51 resistance holds, in case of recovery. Sustained break of 151.49 will raise the chance of bearish reversal. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Employment Change Q4 | -0.10% | -0.20% | -0.50% | -0.60% | | 21:45 | NZD | Unemployment Rate Q4 | 5.10% | 5.10% | 4.80% | | 21:45 | NZD | Labour Cost Index Q/Q Q4 | 0.60% | 0.60% | 0.60% | | 23:30 | JPY | Labor Cash Earnings Y/Y Dec | 4.80% | 3.80% | 3.00% | 3.90% | | 00:30 | JPY | Services PMI Jan F | 53 | 52.7 | 52.7 | | 01:45 | CNY | Caixin Services PMI Jan | 51 | 52.3 | 52.2 | | 07:45 | EUR | France Industrial Output M/M Dec | -0.10% | 0.20% | | 08:50 | EUR | France Services PMI Jan F | 48.9 | 48.9 | | 08:55 | EUR | Germany Services PMI Jan F | 52.5 | 52.5 | | 09:00 | EUR | Eurozone Services PMI Jan F | 51.4 | 51.4 | | 09:30 | GBP | Services PMI Jan F | 51.2 | 51.2 | | 10:00 | EUR | Eurozone PPI M/M Dec | 0.50% | 1.60% | | 10:00 | EUR | Eurozone PPI Y/Y Dec | -0.10% | -1.20% | | 13:15 | USD | ADP Employment Change Jan | 149K | 122K | | 13:30 | USD | Trade Balance (USD) Dec | -97.1B | -78.2B | | 13:30 | CAD | Trade Balance (CAD) Dec | 0.4B | -0.3B | | 14:45 | USD | Services PMI Jan F | 52.8 | 52.8 | | 15:00 | USD | ISM Services PMI Jan | 54.2 | 54.1 | | 15:30 | USD | Crude Oil Inventories | 2.4M | 3.5M |
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