Yen Decline Persists, Pound Eyes UK Wage Data
| Action Insight Dailay Report 5-14-24 |
Yen Decline Persists, Pound Eyes UK Wage Data |
Yen's decline persisted in Asian session, continuing to reverse its strong gains from earlier in the month. Traders seem confident that Japan will not intervene as long as Yen remains above 160 level against Dollar, with no apparent determination to push it through 150. This range appears to be set for the near term. Japan's response to Yen's selloff has been restrained. Finance Minister Shunichi Suzuki reiterated his commitment to closely monitoring the currency markets and taking all possible measures against excessive, speculative moves. He emphasized the importance of close communication and coordination BoJ. Elsewhere in the currency markets, Sterling ranks as the second strongest currency of the day after Dollar. The Pound is anticipating today's UK employment data, with particular attention on wage growth. BoE Governor Andrew Bailey has left the door open for a June rate cut, but some economists believe the central bank will not rush into a decision until the risk of wage-driven inflation resurgence is mitigated. Currently, Aussie follows Yen as the second weakest currency, with Loonie trailing behind. Euro and Swiss Franc are positioned in the middle... |
USD/JPY Daily Outlook Daily Pivots: (S1) 155.74; (P) 156.00; (R1) 156.47; More... Intraday bias in USD/JPY stays mildly on the upside at this point. Rebound from 151.86, as the second leg of the corrective pattern from 160.20, is in progress for 157.98 resistance. On the downside, break of 155.25 minor support will suggest that the third leg has started, and turn bias back to the downside for 151.86 support. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | PPI Y/Y Apr | 0.90% | 0.90% | 0.80% | 0.90% | | 06:00 | GBP | Claimant Count Change Apr | 13.9K | 10.9K | | 06:00 | GBP | ILO Unemployment Rate (3M) Mar | 4.30% | 4.20% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Mar | 5.30% | 5.60% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Mar | 6.00% | | 06:00 | EUR | Germany CPI M/M Apr F | 0.50% | 0.50% | | 06:00 | EUR | Germany CPI Y/Y Apr F | 2.20% | 2.20% | | 06:00 | JPY | Machine Tool Orders Y/Y Apr | -3.80% | | 06:30 | CHF | Producer and Import Prices M/M Apr | 0.20% | 0.10% | | 06:30 | CHF | Producer and Import Prices Y/Y Apr | -2.10% | | 09:00 | EUR | Germany ZEW Economic Sentiment May | 44.9 | 42.9 | | 09:00 | EUR | Germany ZEW Current Situation May | -75 | -79.2 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment May | 46.1 | 43.9 | | 10:00 | USD | NFIB Business Optimism Index Apr | 88.1 | 88.5 | | 12:30 | USD | PPI M/M Apr | 0.20% | 0.20% | | 12:30 | USD | PPI Y/Y Apr | 2.20% | 2.10% | | 12:30 | USD | PPI Core M/M Apr | 0.20% | 0.20% | | 12:30 | USD | PPI Core Y/Y Apr | 2.40% | 2.40% | | 12:30 | CAD | Wholesale Sales M/M Mar | -0.90% | 0.00% |
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