The USD/JPY pair continued its gallop reaching fresh highs. Can the pair continue it’s billowing without a pullback? The main market movers for this week are the BOJ Governor Haruhiko Kuroda’s speech and the rate decision. We present you an outlook update for the Japanese events.
The quickest growth in a year it is represented by the Japanese economy firm growth that took place in the first quarter of 2013 rising 0.9%, between January and March. The Yen’s fading and the deflation is improving. In the US, the dollar has no reason to rise because the economic indicators are not so good.
1. All Industries Activity – in February the Japan’s industry activity improved rising by 0.6% after a 1.6% fall in January. This recovery that took place in the industry activity occurred mainly due to a recovery in tertiary activity although this increase was contrary to market forecast of a 0.6 percent decline. According to the early basis all industry activity fell with a percentage of 2.5 in February, compared to a 0.7 percentage fall in January. For now it is expected a drop of 0.3%.
2. BOJ Press Confidence and Monetary Policy Statement – in line with Forex the Bank of Japan kept monetary policy unchanged in April, following exceptional stimulus measures declared earlier that month to meet the 2 percent inflation rate target of two years. No big change is expected at this time.
3. BOJ Monthly Report: the Bank of Japan took a surprising and unprecedented decision by investing about $1.4 trillion into the economy in less than two years. Haruhiko Kuroda which is the new Governor sustained that the monetary base would nearly double by the end of 2014 reaching a value of $2.9 trillion increasing to 270 trillion yen.
4. Trade balance: the trade balance deficit reached Y922 million and it was adjusted by the March seasonally, from Y1.09 billion deficit in the previous month. Due to a rise of 1.6 percent in exports from February and a 2.4 percent, occurred the 1.2 percent drop in deficit. The unadjusted merchandise trade was smaller than expected. It is forecasted an improvement to 0-61T.
5. The BOE’s Governor Haruhiko Kuroda speaks: it is very possible that he will talk about the positive development in Japan’s economy over the last month and about the new monetary policy. He can cause volatility on the market with his speech.
The long term direction of the USD/JPY pair remains up. In the US the fiscal tightening can boost the dollar across the board and the extreme monetary mean wile fiscal policies coming from Japan are likely to push the Yen lower across the board.
More details on: www.teletrade-dj.ro
The quickest growth in a year it is represented by the Japanese economy firm growth that took place in the first quarter of 2013 rising 0.9%, between January and March. The Yen’s fading and the deflation is improving. In the US, the dollar has no reason to rise because the economic indicators are not so good.
1. All Industries Activity – in February the Japan’s industry activity improved rising by 0.6% after a 1.6% fall in January. This recovery that took place in the industry activity occurred mainly due to a recovery in tertiary activity although this increase was contrary to market forecast of a 0.6 percent decline. According to the early basis all industry activity fell with a percentage of 2.5 in February, compared to a 0.7 percentage fall in January. For now it is expected a drop of 0.3%.
2. BOJ Press Confidence and Monetary Policy Statement – in line with Forex the Bank of Japan kept monetary policy unchanged in April, following exceptional stimulus measures declared earlier that month to meet the 2 percent inflation rate target of two years. No big change is expected at this time.
3. BOJ Monthly Report: the Bank of Japan took a surprising and unprecedented decision by investing about $1.4 trillion into the economy in less than two years. Haruhiko Kuroda which is the new Governor sustained that the monetary base would nearly double by the end of 2014 reaching a value of $2.9 trillion increasing to 270 trillion yen.
4. Trade balance: the trade balance deficit reached Y922 million and it was adjusted by the March seasonally, from Y1.09 billion deficit in the previous month. Due to a rise of 1.6 percent in exports from February and a 2.4 percent, occurred the 1.2 percent drop in deficit. The unadjusted merchandise trade was smaller than expected. It is forecasted an improvement to 0-61T.
5. The BOE’s Governor Haruhiko Kuroda speaks: it is very possible that he will talk about the positive development in Japan’s economy over the last month and about the new monetary policy. He can cause volatility on the market with his speech.
The long term direction of the USD/JPY pair remains up. In the US the fiscal tightening can boost the dollar across the board and the extreme monetary mean wile fiscal policies coming from Japan are likely to push the Yen lower across the board.
More details on: www.teletrade-dj.ro