AceTraderForex Apr 15: Intra-Day Market Moving News and Views

Trading Discussion Currencies
41

[B]Intra-Day Market Moving New and Views USD/JPY[/B]

[B]22 Aug 2014[/B] [I] 02:31GMT[/I]

[B]USD/JPY [/B]-.... Despite the release of a slew of upbeat U.S. economic figures on Thur, investors shrugged off the data n decided to take profit ahead of Fri's Fed Chair Janet Yellen's speech in Jackson Hole as market anticipated that she will deliver dovish remarks to complement the hawkish FOMC minutes in order to convey to markets that even though rates will rise, monetary authorities will make sure they do so gradually. Dlr retreated after rising to a fresh 4-1/2 month peak at 103.96 in Asia yesterday and then briefly weakened to 103.60 in NY morning b4 climbing back to 103.95 in Tokyo morning on renewed cross-selling in yen due to increase of risk appetite (S&P 500 climbed to its intra-day all-time high of 1,991.45 n closed at record high of 1,990.15 on Thur).

As Japan’s Nikkei 225 Stock Average is also heading for a 10th day of gains - the longest winning streak in 26 years (N225 is currently trading up 19 points to 15,605), therefore, buying dlr on dips for a re-test of daily key res at 104.13 (Apr 4 high) is the way to go, however, sharp gain abv there is unlikely to be seen as layers of selling interest on profit-taking are noted up fm 104.10 to 104.40. On the downside, bids are located at 103.70-60 n then 103.50 with stops emerging below 103.30.

Yesterday the greenback stabilised after retreating briefly to 103.60 after the release of a series of U.S. economic data, including exiting home sales, leading index, Philly Fed. Bids are now located at 103.65-60 whilst offers are tipped below Asian fresh 4-1/2 month peak at 103.96 with mixture of offers n stops seen at 104.00.

[B]Friday [/B]will see the release of Canada’s CPI and retail sales. Investors are reluctant to add bets ahead of a keynote speech at 14:00GMT by Fed Chair Janet Yellen who may provide her take on the latest data on labor markets at the Kansas City Fed’s annual symposium in Jackson Hole, Wyoming.

42

[B]Intra-Day Market Moving News & Views USD/JPY
28 Aug 2014[/B] [I]02:43GMT[/I]

[B]USD/JPY [/B]- ..... Despite a recovery from 103.79 to 104.00 in NY session, dlr came under renewed selling pressure shortly after Tokyo open n briefly weakened to 103.70 as fall in Nikkei triggered broad-based buying in yen (N225 was last seen down 80 points to 15454).

Although dlr’s intra-day breach of yesterday’s NY low at 103.75 suggests further choppy trading below Mon’s 7-month peak at 104.49 would continue, sharp fall is unlikely ahead of the release of a slew of U.S. data (U.S. Q2 GDP, PCE, jobless claims n pending home sales) in NY morning.
Therefore, trading dlr from both sides of the market is recommended.
Bids are placed at 103.70/65 n 103.55 with stops emerging just below 103.50. On the upside, offers are noted at 103.80-90 n then 104.00 with stops located above 104.10.
Japan’s FinMin is to request record 25.8238 tln yen for debt servicing costs for fiscal 2015/16.

Last night despite dollar’s brief bounce to 104.16 in Asian morning, selling interest below penetrated Tuesday’s NY res at 104.17 capped dollar’s upside and price ratcheted lower to 103.79 in New York morning before trading sideways. Offers are now tipped at 104.00-10 whilst some bids are located at 103.80-75 with some stops seen below there but buying interest is located well above 103.50 sup.
Federal Reserve said to hold open meeting on Sept 3 on final rules for liquidity ratio, margin for non-cleared swaps.

[B]Thursday [/B]will see the release of Australia’s HIA new home sales, building Capex and capital expenditure, Germany’s unemployment rate and change, Italy’s retail sales, eurozone business climate, consumer confidence and economic and industrial sentiment; U.K. CBI distributive trades; Germany’s CPI and HICP, Canada’s current account, U.S. PCE, GDP and pending home sales on Thursday.

43

[B]Intra-Day Market Moving New and Views

29 Aug 2014[/B] [I]02:22GMT[/I]

[B]USD/JPY [/B]- .... Dlr went through a mini 'roller-coaster' session on Thur. Although broad-based buying in yen due to renewed geopolitical tensions in Ukraine pressured price to 103.56 in Thursday's Europe, release of upbeat 2nd reading of U.S. GDP lifted price to 103.90 in NY morning but only to retreat to 103.65 in NY afternoon.

Today, traders have showed muted reaction to the early release of a slew of mixed economic reports from Japan (including unemployment rate, all household spending, CPI, industrial production and retail sales), suggesting consolidation above said yesterday’s 103.56 low would continue, therefore, buying dlr on dips is still the favoured strategy.

Bids are noted at 103.60-50 with stops below 103.50, whilst offers are placed at 103.85/90 and above with stops emerging above 104.20.

[B]Friday [/B]will see the release of Japan’s unemployment rate, CPI, industrial output and retail sales, New Zealand’s business outlook, Australia’s housing credit and private sector credit, Japan’s housing starts and construction orders, Swiss KOF indicator, Italy’s unemployment rate, eurozone inflation and unemployment rate, U.S. PCE, personal consumption and income, Canada’s GDP, producer prices and raw material prices, U.S. Chicago PMI, University of Michigan condition and expectations.

44

[B]Intra-Day Market Moving New and Views

03 Sep 2014[/B] [I]02:34GMT[/I]

[B]USD/JPY[/B] - ..... The greenback continued its recent winning streak and strengthened to a fresh 8-month high of 105.27 ahead of Tokyo open on renewed broad-based selling in the yen following Tuesday's rally on market speculation Japanese PM Abe will appoint Yasuhisa Shiozaki, deputy policy chief of the LPD who may shift pension funds toward riskier assets.

Current firmness due to 130 points gain in the N225 index suggests buying dlr on dips for a re-test of 2014 peak at 105.45 is recommended. However, sharp gain is unlikely to be seen as market participants are awaiting release of a slew of U.S. data, then the U.S. Beige book later today (18:00GMT) to get a snapshot of economic health in each of the central bank’s districts for hints of Fed to ending its extraordinary monetary policy and normalizing interest rate.

Bids are noted at 105.00-104.80 region, with stops below there. On the upside, offers are placed at 105.30-40 and then 105.50 with stops touted above there.

Last night the greenback rallied to a fresh 8-month high of 105.21 in NY morning after the release of much stronger-than-expected U.S. ISM manufacturing PMI which came in better-than-expected at 59.0 versus economists’ forecast of 56.8. However, profit-taking offers capped dlr’s upside somewhat n more offers are tipped at 105.40/45. On the downside, bids are located at 105.00, 104.85-80 and more at 104.70.

[B]Wednesday [/B]will see the release of U.K. BRC shop price index, China’s NBS non-manufacturing PMI, Australia’s GDP, China’s HSBC services PMI, German and eurozone and U.K. Markit services PMI, eurozone retail sales, U.S. Redbook, ISM-New York index, Canada’s rate decision, U.S. factory orders, durable goods and Fed’s Beige book.

45

[B]Intra-Day Market Moving New and Views USD/JPY

05 Sep 2014[/B] [I]01:49GMT[/I]

[B]USD/JPY [/B]- … Japan’s FinMin Taro Aso said, quote:
“rapid FX moves undesirable”.
“Understand BoJ Kuroda’s concern about risk from foregoing next sales tax hike;
Rapid FX moves undesirable”.
“hard to know if raising min. wage would hurt or help employment”;
compiling extra budget will be an option to back decision in Dec on next tax hike.’
“not surprised about FX moves, trend is more dlr strength than yen weakness”;
if uncertainty about economy outlook appears, gov’t and BoJ would call on each other to respond;
dollar has reached 105 yen due to strength of U.S. economy.’

[B]Friday [/B]will see the release of U.K. RICS housing price balance, Bank of Japan monthly economy servery and leading indicator, Germany’s industrial output, Swiss CPI and industrial orders, eurozone revised GDP, U.S. non-farm payrolls, private payrolls and unemployment rate, Canada’s employment change, unemployment rate and Ivey PMI.

46

[B]Intra-Day Market Moving New and Views USD/JPY

08 Sep 2014[/B] [I]02:12GMT
[/I]
[B]USD/JPY[/B] - … The greenback went through a mini ‘roller-coaster’ session in early Monday trading. Although price dipped to 104.93 partly on selling in stg/yen & eur/yen, intra-day steep fall in the pound at NZA open lifted the dlr broadly and price quickly pared initial loss and climbed to 105.23 but offers below Fri’s NY high at 105.26 checked dlr’s upside n price edged lower ahead of Tokyo open.

Dlr showed muted reaction to a downward revision to Japan’s Q2 GDP which showed Japan’s Q2 growth shrank to 7.1% annually vs previous reading of -6.8% (but not far fm forecast of -7.0%). The GDP contraction was the steep since Q1 2009 after the Lehman crash.

Range trading is expected after Fri’s strong retreat from a near 6-year peak of 105.71 (AUS) to as low as 104.69 after a surprise disappointing U.S. payrolls.
Initial bids are noted at 105.95/00 and more below with fairly large stops touted below 104.65. On the upside, offers are tipped at 105.20-30 and more at 105.45/55, suggesting choppy consolidation would continue.

[B]Next week [/B]will see the release of Japan’s current account, revised GDP and economy watcher poll, Swiss unemployment rate, Germany’s imports, exports and trade balance, Swiss CPI and retail sales, eurozone Sentix index and Canada’s building permits [B]on Monday. [/B]

U.K. BRC retail sales, Bank of Japan’s meeting minutes, Australia’s NAH business confidence, Japan’s consumer confidence index, U.K. industrial and manufacturing output, goods trade balance, Canada’s housing starts [B]on Tuesday. [/B]

Japan’s corp. goods price and machinery orders, Australia’s consumer sentiment, Canada’s capacity utilization, U.S. wholesale inventories [B]on Wednesday. [/B]

Reserve Bank of New Zealand interest rate decision, Australia’s employment, full time employment and unemployment rate, China’s CPI and PPI, Germany’s CPI and HICP, Canada’s new housing price index and U.S. Federal budget [B]on Thursday. [/B]

New Zealand’s manufacturing PMI, Japan’s capacity utility index and industrial output, eurozone employment and industrial production, U.S. exports, imports, retail sales, University of Michigan sentiment and business inventories [B]on Friday.[/B]

47

[B]Intra-Day Market Moving New and Views USD/JPY

10 Sep 2014[/B] [I]01:31GMT[/I]

[B]USD/JPY[/B] - ..... Statement from BoJ Deputy Governor Iwata, quote:

‘QQE has been exerting intended effects;
Japan’s economy continues to recover moderately as a trend, although effect of sales tax hike remains;
what matters is the mechanism underlying the economic recovery and not temporary factors;
BoJ judges that the virtuous cycle of economic activity remains firmly intact in both the household and corporate sectors;
with the employment and income situation improving steadily, private consumption has remained resilient as a trend;
labour market is likely to continue tightening as the economy continues to recover;
virtuous cycle of economic activity in the household sector is expected to remain in place;
BoJ will carefully examine how decline in real income, due to tax hike, affects households’ spending behaviour;
need structural reforms, not just monetary policy, to achieve govt economic growth targets;
2 pct price target can be achieved with monetary policy regardless of potential growth rate;
Japan’s potential growth rate estimated around 0.5 percent; now is time for efforts to promote innovation and reverse decline in working age population; export recovery has been delayed, but exports likely to head for a moderate increase;
Japan’s economy likely to continue recovering moderately as a trend;
yen depreciation does not necessarily lead to inflation;
exports are potential concern for outlook of Japan’s economy;
from somewhat longer-term perspective, correction of past excessive yen appreciation will mitigate downward pressure on exports;
yen depreciation can raise prices for some goods but also weigh on aggregate demand;
need to examine output gap to forecast prices on macro level;
increase in CPI is expected to accelerate moderately, along with increasing wages;
yen falls will encourage firms to be more proactive in capex, boost exports.’

[B]Wednesday [/B]will see the release of Japan’s corp. goods price and machinery orders, Australia’s consumer sentiment, Canada’s capacity utilization and U.S. wholesale inventories.

48

[B]
Intra-Day Market Moving New and Views

USD/JPY -[/B] … Despite dlr’s initial fall to 106.04 shortly after Tokyo open, comments from BoJ Deputy Governor Iwata triggered broad-based selling in yen and price later penetrated yesterday’s fresh 6-year peak at 104.47 to a high of 106.56 ahead of European open.

Fresh bids are building up in 106.30-10 region with mixture of bids and stops located around 106.00.
On the upside, offers are noted at 106.60/65 with some stops touted above there.

Earlier, BoJ Deputy Governor Iwata said:
‘positive effect of weak yen on exports is smaller now than in late 2000’s; Japan firms likely to overcome rising import costs from weak yen;
weak yen may raise prices temporarily, but that alone can’t lift inflation in long-term perspective;
Japan on track to meet BoJ’s price target;
weak yen may push up import costs but may lead to fall in other prices, so must look at its effect comprehensively in guiding monetary policy;
don’t see any problem with BoJ buying govt debt with negative yield, even if that is what happened yesterday;
don’t forsee any difficulties in boj’s market operations even if BoJ has bought govt debt with negative yields;
can’t comment on market speculation BoJ may ease further, we will look at upside and downside risks through various data;
too early to say consumer sentiment has cooled, want to watch trend with a longer-term perspective.’

49

[B]Intra-Day Market Moving New and Views

12 Sep 2014[/B] [I]02:28GMT[/I]

[B]USD/JPY [/B]- ..... Despite dollar's retreat after a brief rise to 107.20 in Thursday's NY morning due to profit-taking, renewed buying interest emerged at 106.65 and pushed price higher in NY afternoon.

The greenback continued its recent winning streak in Tokyo morning and rose to a fresh 6-year peak at 107.30, helped by Nikkei as it turned into positive territory after opening down 0.15% at 15885 (currently up 61 points to 15970).

As speculation of Fed may take a hawkish turn at its policy meeting next week continues to boost demand for greenback, buying dlr on dips is recommended.
Investors should pay attention to the release of U.S. retail sales and Uni. of Michigan prelim. consumer sentiment surveys in NY morning as they might give dlr another boost due to the optimism of an increase of 0.6% in August and an improvement to 83.3 respectively.

Bids are placed at 107.00-106.90 with mixture of bids n stops at 106.60/70. On the upside, offers are located at 107.30-40 n around 107.50 with selling interest from various accounts at 107.70/80 n ahead of 108.00.

[B]Friday [/B]will see the release of New Zealand’s manufacturing PMI, Japan’s capacity utility index and industrial output, euro zone employment and industrial production, U.S. exports, imports, retail sales, University of Michigan sentiment and business inventories.

50

[B]Intra-Day Market Moving New and Views

15 Sep 2014

USD/JPY [/B]- ....... Although the greenback staged a rebound after initial gap-down open to 107.16 in NZ, renewed broad-based buying in yen due to fall in the Nikkei futures capped gain just below last Fri's fresh 6-year peak at 107.40 shortly after Asian open n price retreated fm 107.36 to 107.19 before recovering.

As today is Japan’s 'Respect of the aged day holiday, market is expected to be quiet in Asia session n range trading below 107.40 should continue until European open.
Offers are noted at 107.30-40 and then around 107.50 with stops emerging just abv 107.70. On the downside, bids are placed at 107.10-00 and then 106.85/80 with stops located below 106.60.

Looking ahead, investors’ focus this week will be on the outcome of Wed’s Fed policy meeting n the following press conference hold by Fed Chair Janet Yellen.
Market is expecting the Fed to cut its asset purchase program by another $10 bln which would keep it on track for winding up the program in Oct, and to start raising interest rates sometime in mid-2015.

51

[B]Intra-Day Market Moving News and Views
16 Sep 2014

USD/JPY [/B]- ..... anticipated comments from BoJ Governor Kuroda, quote:

Business fixed investment is expected to continue its moderate increasing trend as corporate profits are expected to continue improving on the whole.
Exports are expected to head for a moderate increase, there are signs of pickup.
while there are concerns including geopolitical risks in some parts of the world, the global economy is likely to continue recovering.
Disinflationary trend a matter of concern in euro area, but area’s economy likely to continue recovering moderately due to ecb steps.
Some geopolitical risks, including those in ukraine and iraq, still warrant attention.
CPI likely to reach boj’s price target of 2 percent around the middle of the current projection period from fiscal 2014 through 2016.
If outlook changes due to manifestation of risks and it is judged necessary for achieving the price stability target, boj will make policy adjustments without hesitation.
Japan’s economy has thus been on a path suggesting that the 2 percent price stability target will be achieved as expected, although we are only halfway there.
Japan’s economy has continued to recover moderately as a trend.
Employment and income situation has continued to improve steadily, and household sentiment has been improving.
Virtuous cycle from income to spending has been operating steadily in both household and corporate sectors.
Effects of decline in demand following april sales tax hike have gradually begun to wane on the whole.
Even since before the tax hike in april this year, the boj’s outlook for economic activity and prices has factored in the two rounds of consumption tax hikes.
Output has recently shown some weakness, exports have lacked momentum

52

[B]Intra-Day Market Moving New and Views

18 Sep 2014 02:12GMT
USD/JPY[/B] - … Statement from Japan Deputy Chief Cabinet Secretary, quote:
‘no truth to report Japan will announce stronger sanction on Russia tomorrow;
will take appropriate action focusing on coordination with G7, on sanctions vs Russia.’

Japan’s MoF, their FinMin Taro Aso and U.S. Treasury Secretary Jack Lew will hold a bilateral meeting on Fri ahead of a weekend gathering of finance leaders in Cairns, Australia.
The ministry said that the 2 sides will likely discuss the ECO. situations of their countries as well as the world economy.

Reuters reported the meeting will take place after the dollar broke above 108 yen, a 6-year high versus the Japanese currency, although it was unknown if the two finance chiefs would discuss currencies.

[B]Thursday [/B]will see the release of New Zealand’s GDP, Japan’s import, export and trade balance, China’s house prices, Swiss trade balance and interest rate decision, U.K. retail sales, CBI trends, U.S. building permits, housing starts, initial jobless claims, Philly Fed business index and U.K. Independence referendum.

53

[B]Intra-Day Market Moving News and Views

19 Sep 2014

USD/JPY [/B]- ...... Dlr continues its recent winning streak and surged to a fresh 6-year peak of 109.45 shortly after Tokyo open as intra-day rally in the Nikkei (currently up by 235 points at 16302) boosted risk sentiment, leading to broad-baesd selling in the yen.

Although price has pared intra-day gain ahead of Tokyo lunch session, buying on dips is the way to go, however, it is advisable to take profit ahead of 110.00 as profit-taking below this ‘rumoured’ option barrier is expected ahead of the weekend.
Although no major U.S. data are due out today, traders may stand aside later on in NY session ahead of the September 20-21 G20 meeting in Cairns, Australia.

Bids are noted at 109.10-00, 108.90/85 and then 108.70-60 with stops emerging below 108.50.
On the upside, offers from various accounts are placed at 109.50-70 region and further out at 109.90-00.

Earlier Japan gov’t said ‘cut overall economic view, saying economy in moderate recovery while weakness seen in some areas; cuts view on private consumption, saying it is seen recently although pick-up trend remains intact.’

54

[B]Intra-Day Market Moving New and Views

23 Sep 2014[/B] [I]02:20GMT[/I]

[B]USD/JPY[/B] - 108.78.. Although dlr remained under pressure at Asian open following o/n weakness in NY session as decline in the Dow (down 107 points) triggered broad-based buying of yen on risk aversion.

The pair briefly penetrated NY low of 108.74 n fell to intra-day low of 108.60, however, release of stronger-than-expected China HSBC flash mfg PMI (Sep came in at 50.5 vs forecast of 50.0) boosted risk sentiment n lifted price to 108.81.

Range trading is expected in quiet Asian morning session as financial markets in Japan are closed for Autumn Equinox holiday.Bids are reported at 108.65-55 with stops touted below 108.50.
Offers are noted at 109.00/10 n more abv with stops abv 109.20. However, more selling interest is reported near last Fri’s fresh 6-year peak at 109.46.

In an interview at a Bloomberg’s eco. forum in NY on Mon, NY Fed President William Dudley said a sharply stronger dollar could hamper Fed efforts to spur growth n lift inflation.

[B]Tuesday [/B]will see the release of China’s HSBC manufacturing PMI, German and eurozone Markit service PMI, U.K. PSNB and PSNCR, Canada’s retail sales, U.S. Redbook and Markit manufacturing PMI.

55

[B]Intra-Day Market Moving New and Views

25 Sep 2014[/B] [I]02:25GMT[/I]

[B]USD/JPY [/B]- ....... Dlr ended up higher above 109.00 level yesterday as release of robust U.S. new home sales data triggered broad-based buying in greenback in NY n investors ignored the comments from Japan PM Abe who expressed concerns over the impact of a weak yen ahead of Wednesday's Tokyo open.

Despite dlr’s retreat after climbing to 109.34 ahead of Tokyo open, intra-day near 200 points rally in the Nikkei should continue to boost risk sentiment and buying dlr on dips is still the way to go, however, sharp gain beyond last Friday’s 6-year peak at 109.46 is not likely ahead of release of a slew of U.S. data in NY morning where are expected to come in weaker than previous readings.
Bids are noted in the region of 109.00-108.80 and then 108.60-50 with stops emerging below 108.30, whilst offers are placed at 109.45/50 and further out at 109.80-90 with stops located just above psychological barrier at 110.00.

U.S. will release durable goods, weekly jobless claims and Markit Service PMI today. Economists forecast durable goods orders to drop 18.0% in August after July’s unusual 22.6% jump which mainly caused by a 317% spike in civilian aircraft n parts orders due to Boeing booking of a record 327 airplane orders.
For the weekly jobless claims and Markit Service PMI, market expects the number to climb to 299K a week ago and to drop to 59.0 in Sept from 59.5 in previous month respectively.

[B]Thursday[/B] will see the release of U.K. CBI distributive trades, U.S. building permits, durable goods and Markit services PMI.

56

[B]Intra-Day Market Moving News and Views

26 Sep 2014[/B] 08:42GMT

[B]USD/JPY[/B] - ...... Despite the greenback's initial weakness to 108.48 in Australia, renewed buying emerged there n pushed the pair higher. Dlr rose to 109.11 ahead of Asian open, n then higher to 109.16 in Asian morning on comments from Japan's Shiozaki. However, price pared its gains and retreated briefly but sharply to 108.85 b4 rebounding again in Europe.

Japan Welfare minister Shiozaki said he has no intention to put off reforms for the Gov’t Pension Ivestment Fund (GPIF).
Reform of this fund is expected to result in more investment being channeled into Japanese equities n overseas assets, thus causing weakness in yen.

Bids are now seen at 108.80/90 n more below at 108.50/60 with stops building up below there whilst initial offers are noted at 109.40/50, suggesting buying on dips is still favored.

Earlier this morning, despite extending previous day’s gain to 109.34 ahead of Tokyo open on Thur, then a marginal rise to 109.37 at European open, the pair fell sharply below 109.00 level in Thur’s NY morning on risk aversion due to decline in U.S. n European stock markets together with news of Japan’s health minister Shiozaki who said no hurry to reform GPIF.
Price tanked to 108.51 n then briefly recovered to 108.88 b4 edging lower in NY afternoon. Dollar fell briefly to 108.47/48 in Tokyo morning but rebounded to 109.11 as Nikkei pared initial losses after a 286 points ‘gap-down’ opening.

Although yesterday’s intra-day sell off fm 109.37 to 108.51 indicates choppy trading below last Fri’s 6-year peak of 109.46 wud contniue as investors are reluctant to add bets ahead of the release of U.S. GDP data (even though it is a final reading) n consumer sentiment report later today, range trading abv this week’s low at 108.26 (Tue) shud continue in Asia n early Europe.
Offers are noted at 108.75/80, 108.95/00 n around 109.20, whilst bids are placed at 108.35/30 n then 108.20 with mixture of bids n stops located just below 108.00.

On the data front, economists estimate the U.S. Q2 real GDP is likely revised higher to 4.6%, while no significant revisions are expected for the GDP price index n core PCE deflator in Q2.
Later, University of Michigan will release report for consumer sentiment in Sept n market expects the final Sept sentiment index to come in higher at 84.7 than the preliminary report.

57

[B]Intra-Day Market Moving New and Views

29 Sep 2014
USD/JPY -[/B] … The greenback strengthen against the yen ahead of Europe after comments from Japan PM Abe (see our prev. MMN), price rose above last Friday’s 6-year peak at 109.54 to 109.75 b4 retreating to 109.55 due to renewed broad-based weakness in dlr.

Offers at 109.60-70 are being absorbing but more are noted at 109.80/85 and ahead of 110.00 with stops emerging just above there.
On the downside, fresh bids are building up at 109.40-30 and 109.20-10 with mixture of bids and stops located just below 109.00.

Japan’s PM Abe said a need to keep cautious watch on impact on economy from sales tax hike, higher fuel prices and adverse weather;
want to achieve summit with Chinese leader at early stage.’

58

[B]Intra-Day Market Moving New and Views

03 Oct 2014[/B] [I]02:40GMT[/I]

[B]USD/JPY [/B]-......News from Japan Health Min Shiozaki, He said, quote

‘what’s most important in GPIF reform is to safely and efficiently manage public’s pension funds;
reforming fund management, governance both important for GPIF.’

Another news from Japan PM Abe, he said, quote:
‘its true Apr sales tax hike led to 7.1% contraction in Apr-Jun GDP;
must scrutinize impact of bad summer weather, rising fuel costs on economy, among other factors, in deciding whether to proceed with second sales tax hike.’

Yesterday saw USD/JPY, the pair was the major mover. Price came under renewed selling pressure due to broad-based buying of yen at Tokyo open as previous day sell off in the Dow pressured the Nikkei.
Dlr fell below Wednesday’s 108.87 low to 138.55 after N225 index tumbled 420 points n despite a brief recovery to 108.96 at yesterday European open, renewed weakness in the Nikkei futures prompted another wave of broad-based buying in yen, the pair tumbled to session low of 108.32.
However, price pares yesterday intra-day loss as Nikkei futures staged a recovery after having fallen 120 points earlier.

[B]Data to be released on Friday: [/B]

China market holiday, non-manufacturing PMI, Australia new home sales, Japan services PMI, Italy services PMI, France services PMI, Germany market holiday, services PMI, EU services PMI, retail sales, UK services PMI, U.S. non-farm payrolls, unemployment rate, avg. earnings, trade balance, services PMI, ISM non-manufacturing PMI, Canada imports, exports and trade balance.

59

[B]Intra-Day Market Moving News and Views[/B]

[B]08 Oct 2014 [/B] [I]02:20GMT[/I]

[B]USD/JPY[/B] - ..... Dlr pares Tue's losses in Tokyo trading and staged a strong bounce from intra-day bottom at 107.76 to 108.44.

Although st specs sold the pair at 108.19 in Australia on stop hunting, price briefly fell below o/n NY low at 107.82 to 107.76. However, buyers quickly emerged and lifted the dlr.
The pair continued to climb just ahead of Tokyo open by Japanese names on ‘bargain hunting’ as sub-108.00 looked cheap to Japanese importers, price later climbed to 108.44 before easing.

Last night the Federal Reserve is prepared to adjust its approach to raising U.S. interest rates, when the time comes, depending on the reaction of financial markets, New York Fed President William Dudley said on Tuesday.

“The trickiest part will be, some things are just not knowable right now, and one thing is exactly how the financial markets will react to the process of monetary policy normalization,” he said at a college here.

The central bank will “adjust the pace with which we’ll do it, the way in which we do it, depending on how circumstances evolve,” Dudley added.

[B]Wednesday[/B] will see the release of UK BRC shop price index, Japan current account, China HSBC services PMI, Swiss unemployment, Canada housing starts and U.S. FOMC minutes.

60

[B]Intra-Day Market Moving News and Views

08 Oct 2014

USD/JPY[/B] - ......comments by BOJ GOV Kuroda who is attending World Bank & G20 n is speaking at The Economic Club of NY said QQE has been producing intended effects:

-virtuous cycle of spending has been operating steadily due to qqe
-japan’s economy has been on path suggesting its 2 percent price stability target will be achieved as expected
-japan’s economy expected to continue its recovery, weathering the temporary slowdown in economic growth due to the consumption tax hike
-japan’s economy has been on path suggesting its 2 percent price stability target will be achieved as expected
-japan’s economy is expected to continue its recovery, weathering the temporary slowdown in economic growth due to the consumption tax hike
-there is almost no slack in japan’s labor market, spare capacity in firms and labor market is zero
-output gap and inflation expectations are expected to continue improving
-we need to raise inflation rates and inflation expectations further toward 2 percent and thus we are only halfway there
-boj will make adjustments without hesitation if outlook changes due to manifestation of risk factors

  • boj’s commitment is “result oriented,” we will continue with qqe to achieve price target and make adjustments if necessary
    -japan’s potential growth rate is estimated to be around 0.5 percent
    -many options are available to ramp up easing if needed

[B]Thursday [/B]will see the release of Japan machinery orders, Australia employment, unemployment, consumer confidence, Germany imports, exports, trade balance, France imports, exports, trade balance, UK BoE rate decision, U.S. jobless claims, wholesale sales, wholesale inventories and Canada new housing price index.