Japanese Manufacturing Confidence Falls, Can a Headless BoJ Intervene?
[B]Fundamental Headlines[/B]
• [B]USDJPY[/B] – Japanese manufacturers confidence fell to the lowest level in four years to minus 12.9, according to the Japanese Business Sentiment Indicator. A U.S. slowdown and higher input costs weighed on manufacturers whose shaken confidence dragged the overall industry indicator down to -9.3. The survey also indicated that manufacturers plan to cut spending on factories and equipment by 6.1 % in the year. Additionally, the strong Yen is diminishing the competiveness of their exports, leading to speculation that the BoJ may intervene. However, an action of this magnitude may not be able to be pulled off by a leaderless Central Bank. For more news and resources please visit our Japanese Yen Currency Room.
• [B]GBPUSD[/B] – U.K. home sellers are remaining stubborn and have increased their asking prices 0.8% in March, according to Rightmove. The current credit crunch has made it difficult for home buyers to get mortgages and the lack of demand will eventually put pressure on prices going forward. Fears are that sellers who are resisting lowering their prices today will be forced to sell at considerably lower prices in the future which will exacerbate the problem and prolong the housing recovery. The BoE may be forced to lower interest rates in order to provide the necessary liquidity to allow the market to stabilize. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I]Political Pendulum Swings Toward Stricter Regulation[/I] (link) – [I]Wall Street Journal[/I]
• [I]In China A Show Of Force[/I] (link) – [I]Wall Street Journal[/I]
• [I]JPM In Talks With Bear To Sweeten The Deal[/I] (link) – [I]Financial Times[/I]
• [I]Recession In U.S. Sows Slower Growth, Weaker Dollar[/I] (link) – [I]Bloomberg[/I]
• [I]Dollar Gains On Speculation Fed’s Actions Will Revive Growth[/I] (link) – [I]Bloomberg
[/I]
