Yen Falls Again: How Much Lower Could It Go?
| Action Insight Daily Report 7-3-24 |
Yen Falls Again: How Much Lower Could It Go? |
Yen's renewed selloff captured some attention in the otherwise subdued Asian session today. With no new comments from Japanese authorities, market participants are left to speculate on when and where the next intervention might occur. A pivotal moment on the horizon is BoJ's meeting on July 31, where the central bank is expected to outline its tapering plans for bond purchases. Additionally, there is prospect that BoJ might raise interest rates again to counteract the negative impacts of Yen's depreciation on the economy. Some analysts suggest that if BoJ's measures fail to meet market expectations, Yen could plunge straight to 170 level against Dollar. However, the immediate focus remains on whether 165 is the intervention threshold. In the broader currency markets this week, Sterling and Euro are currently the strongest currencies, followed by Dollar and Aussie. It is worth noting, however, that these four currencies are still trading within last week's ranges relative to each other, indicating a lack of decisive strength among them. Swiss Franc is the weakest performer, followed by Yen and Kiwi, with Loonie positioned in the middle... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 204.18; (P) 204.53; (R1) 205.17; More... GBP/JPY's rally continues today and intraday bias stays on the upside. Current up trend should target 100% projection of 191.34 to 200.72 from 197.18 at 206.56 next. On the downside, below 203.87 minor support will turn intraday bias neutral and bring consolidations. But outlook will remain bullish as long as 201.59 resistance turned support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | Retail Sales M/M May | 0.60% | 0.30% | 0.10% | | 01:30 | AUD | Building Permits M/M May | 5.50% | 1.60% | -0.30% | 1.90% | | 01:45 | CNY | Caixin Services PMI Jun | 51.2 | 53.4 | 54 | | 07:45 | EUR | Italy Services PMI Jun | 53.9 | 54.2 | | 07:50 | EUR | France Services PMI Jun F | 48.8 | 48.8 | | 07:55 | EUR | Germany Services PMI Jun F | 53.5 | 53.5 | | 08:00 | EUR | Eurozone Services PMI Jun F | 52.6 | 52.6 | | 08:30 | GBP | Services PMI Jun F | 51.2 | 51.2 | | 09:00 | EUR | Eurozone PPI M/M May | 0.00% | -1.00% | | 09:00 | EUR | Eurozone PPI Y/Y May | -4.10% | -5.70% | | 11:30 | USD | Challenger Job Cuts Y/Y Jun | -20.30% | | 12:15 | USD | ADP Employment Change Jun | 158K | 152K | | 12:30 | CAD | Trade Balance (CAD) May | -0.8B | -1.0B | | 12:30 | USD | Trade Balance (USD) May | -76.0B | -74.6B | | 12:30 | USD | Initial Jobless Claims (Jun 28) | 235K | 233K | | 13:45 | USD | Services PMI Jun F | 55.1 | 55.1 | | 14:00 | USD | ISM Services PMI Jun | 52.5 | 53.8 | | 14:00 | USD | Factory Orders M/M May | 0.30% | 0.70% | | 14:30 | USD | Crude Oil Inventories | -0.4M | 3.6M | | 16:00 | USD | Natural Gas Storage | 29B | 52B | | 18:00 | USD | FOMC Minutes |
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