Yen Up Slightly After BoJ Hike; Aussie Tumbles on Core Inflation Relief
| Action Insight Daily Report 7-31-24 |
Yen Up Slightly After BoJ Hike; Aussie Tumbles on Core Inflation Relief |
Yen rose broadly today after the BoJ raised interest rates for the second time this year, and maintained hawkish bias. However, buying momentum has not been decisive. This lack of strong momentum can be attributed to the fact that the rate hike decision was likely well priced in by the markets. Nikkei's rebound following the announce further indicates that BoJ's move was anticipated. Additionally, traders remain cautious ahead of FOMC rate decision later today, where Fed might signal a rate cut in September. In contrast, Australian Dollar tumbled broadly following release of quarterly CPI data. Markets and economists showed relief as the trimmed mean CPI slowed in Q2, which overshadowed the rise in headline CPI. The continued core disinflation provides RBA with some room to keep interest rates unchanged next week, avoiding the need for another rate hike. Overall, Dollar is following Aussie as the second weakest currency of the day so far, with Loonie r trailing in third place. Swiss Franc has emerged as the strongest currency, followed by Yen and then Euro. British pound and Kiwi are positioned in the middle of the performance spectrum... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 194.86; (P) 197.17; (R1) 198.37; More... Intraday bias in GBP/JPY is back on the downside with breach of 195.84 temporary low. Fall from 208.09 is probably a larger scale correction and should target 185.49 fibonacci level. Nevertheless, on the upside, firm break of 199.45 resistance will mix up the outlook and turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Building Permits M/M Jun | -13.80% | -1.70% | -1.90% | | 23:50 | JPY | Industrial Production M/M Jun P | -3.60% | -4.20% | 3.60% | | 23:50 | JPY | Retail Trade Y/Y Jun | 3.70% | 3.30% | 2.80% | | 01:00 | NZD | ANZ Business Confidence Jul | 27.1 | 6.1 | | 01:30 | AUD | Monthly CPI Y/Y Jun | 3.80% | 3.80% | 4.00% | | 01:30 | AUD | CPI Q/Q Q2 | 1.00% | 1.00% | 1.00% | | 01:30 | AUD | CPI Y/Y Q2 | 3.80% | 3.80% | 3.60% | | 01:30 | AUD | RBA Trimmed Mean CPI Q/Q Q2 | 0.80% | 0.90% | 1.00% | | 01:30 | AUD | RBA Trimmed Mean CPI Y/Y Q2 | 3.90% | 4.00% | 4.00% | | 01:30 | AUD | Retail Sales M/M Jun | 0.50% | 0.30% | 0.60% | | 01:30 | AUD | Private Sector Credit M/M Jun | 0.60% | 0.40% | | 01:30 | CNY | NBS Manufacturing PMI Jul | 49.4 | 49.3 | 49.5 | | 01:30 | CNY | NBS Non-Manufacturing PMI Jul | 50.2 | 50.2 | 50.5 | | 03:57 | JPY | BoJ Interest Rate Decision | 0.25% | 0.25% | 0.10% | | 05:00 | JPY | Housing Starts Y/Y Jun | -6.70% | -2.00% | -5.30% | | 05:00 | JPY | Consumer Confidence Jul | 36.7 | 36.5 | 36.4 | | 06:00 | EUR | Germany Import Price Index M/M Jun | 0.10% | 0.00% | | 07:55 | EUR | Germany Unemployment Change Jul | 16K | 19K | | 07:55 | EUR | Germany Unemployment Rate Jul | 6.00% | 6.00% | | 08:00 | CHF | UBS Economic Expectations Jul | 17.5 | | 09:00 | EUR | Eurozone CPI Y/Y Jul P | 2.40% | 2.50% | | 09:00 | EUR | Eurozone CPI Core Y/Y Jul P | 2.80% | 2.90% | | 12:15 | USD | ADP Employment Change Jul | 166K | 150K | | 12:30 | USD | Employment Cost Index Q2 | 1.00% | 1.20% | | 12:30 | CAD | GDP M/M May | 0.10% | 0.30% | | 13:45 | USD | Chicago PMI Jul | 44.1 | 47.4 | | 14:00 | USD | Pending Home Sales M/M Jun | 1.60% | -2.10% | | 14:30 | USD | Crude Oil Inventories | -1.6M | -3.7M | | 18:00 | USD | Fed Interest Rate Decision | 5.50% | 5.50% | | 18:30 | USD | FOMC Press Conference |
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