[B]Intra-Day Market Moving News and Views
13 Nov 2014 [/B] [I]02:18GMT[/I]
[B]USD/JPY[/B] - ...... After taking centre stage by swinging wildly in Asia, European & NY sessions on Wednesday, the greenback has moved narrowly in relatively subdued Tokyo morning trading as the absence of market-moving comments by Japanese official(s) has kept price moving sideways.
Dlr showed muted reaction to early release of Japan’s machinery orders which showed an unexpected rise of 2.9% in September vs forecast of a drop of 1.9%. However, for those who like to trade on comments/news, keep an eye on breaking news from Reuters/Bloomberg when BoJ Governor Kuroda appears before the Japanese parliament at 04:40GMT.
Despite yesterday’s brief drop to 114.85 (Reuters) in NY morning, subsequent strong bounce in NY afternoon on renewed dlr’s broad-based strength suggests consolidation with mild upside bias is in store, however, as the Nikkei is trading well below yesterday’s fresh 7-year peak at 17443 (currently at 17225), range trading should continue.
Offers are noted at 115.70/75 n more above with stops reported above 116.10. Initial bids are noted at 115.40-30 n more below with stops building below 114.80.
Japan Chief Gov’t spokesman: decline to comment on some views that next sales tax hike should be delayed by a year and a half. To hike or not to hike (sales tax), Japanese officials have kept the market guessing.
The WSJ reported Japan’s PM Shinzo Abe will likely decide next week to postpone an unpopular sales-tax increase, judging that the country’s economy is too weak to withstand the burden, n call a general election to seek public support for his economic program, a top Abe administration official said on Wednesday.
Abe’s aides are preparing for an election campaign next month that will stress growth over fiscal austerity, weighing the likelihood that data due next Mon will show growth in the Jul-to-Sep quarter was below 2% on an annualized basis, the gov’t official said. “We want to seek a mandate to push ahead with Abenomics, with the growth policy,” said the official, adding that any election would likely come on Dec. 14 or Dec. 21.
Abe has said he would decide on the sales-tax increase in Dec after considering Jul-to-Sep GDP figures, suggesting he would wait until a revision to the GDP data is released Dec. 8. On Tue, he reiterated that view n said he hasn’t “decided on the timing” of an election.
The official said the PM’s aides were preparing an election platform that, in addition to delaying the sales-tax rise, would call for a greater cut in corporate taxes than Abe has pledged so far.
Amamiya says ‘BoJ’s current QQE programme is open-ended, not deadline set; BoJ won’t hold off on taking steps to hit its price target just because of worries over risks of hurting its balance sheet;
see no need to worry about risk of triggering hyper-inflation with BoJ’s policy, which aimed at achieving 2 pct inflation.’
[B]Thursday [/B]will see the release of Japan CGPI, machinery orders, industrial output, capacity utilization, China industrial output, retail sales, Germany CPI, HICP, Swiss PPI, Italy CPI, Canada housing price index, U.S. jobless claims and Federal budget.