The USD/JPY traded lower in limited price action, finishing at 109.927, down 0.058 or -0.05%. The Japanese Yen found support from BoJ Kuroda’s speech in
The USD/JPY traded lower in limited price action, finishing at 109.927, down 0.058 or -0.05%. The Japanese Yen found support from BoJ Kuroda’s speech in parliament today, where he mentioned issues over exiting the BoJ’s easy monetary policy.
Kuroda’s comments came as a surprise to traders, as for the first time ever he spoke on rolling back the ongoing accommodative monetary policy regime. Weakness in the Japanese equity market also weighed down on the USD/JPY, with the Nikkei 225 index now up +1.61% versus +1.85 seen earlier.
Today can best be described as a “data lite” day with no major economic releases expected. The calendar suggests the USD/JPY will be largely influenced by a few Fed speakers. Lately, they have been hawkish so if they continue the trend then the U.S. Dollar may rebound against the Japanese Yen later today.
The sideways price action of late suggests that dollar investors are looking for further incentives to challenge recent highs and move yet higher. These fresh incentives could come in the form of more data due later this week, and Japan’s stance on fiscal stimulus, which would in turn boost the Nikkei and improve risk appetite.
The dollar could take its cues over the next few days from data including U.S. initial jobless claims and pending home sales on Thursday and Japanese inflation and U.S. first quarter GDP figures on Friday.
Fed Chair Janet Yellen is also due to speak on Friday, which is also the concluding day for the Ise-Shima G7 Summit being held in Japan.
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Today’s economic releases:
Cur. | Event | Actual | Forecast | Previous |
USD | API Weekly Crude Oil Stock | -5.137M | -3.300M | -1.140M |
USD | API Weekly Cushing Crude Oil Stock | -0.189M | -0.950M | 0.508M |
NZD | Trade Balance (MoM) (Apr) | 292M | 60M | 117M |
NZD | Trade Balance (YoY) (Apr) | -3,660M | -3,940M | -3,380M |
AUD | Construction Work Done (QoQ) (Q1) | -2.6% | -1.5% | -3.6% |
EUR | GfK German Consumer Climate (Jun) | 9.7 | 9.7 | |
EUR | German Business Expectations (May) | 100.8 | 100.4 | |
EUR | German Current Assessment (May) | 113.2 | 113.2 | |
EUR | German Ifo Business Climate Index (May) | 106.8 | 106.6 | |
EUR | EU Finance Ministers Meeting | |||
USD | Goods Trade Balance (Apr) | -60.10B | -56.90B | |
USD | FOMC Member Harker Speaks | |||
USD | Services PMI (May) | 53.1 | 52.8 | |
CAD | Interest Rate Decision | 0.50% | 0.50% | |
USD | Crude Oil Inventories | -2.450M | 1.310M | |
USD | Cushing Crude Oil Inventories | 0.461M | ||
USD | FOMC Member Kashkari Speaks | |||
USD | FOMC Member Kaplan Speaks | |||
AUD | Private New Capital Expenditure (QoQ) (Q1) | -3.0% | 0.8% |
Thursday, May 26, 2016
Cur. | Event | Actual | Forecast | Previous |
GBP | BBA Mortgage Approvals | 44.8K | 45.1K | |
GBP | Business Investment (QoQ) (Q1) | 0.1% | -2.0% | |
GBP | GDP (YoY) (Q1) | 2.1% | 2.1% | |
GBP | GDP (QoQ) (Q1) | 0.4% | 0.4% | |
USD | FOMC Member Bullard Speaks | |||
USD | Core Durable Goods Orders (MoM) (Apr) | 0.3% | -0.2% | |
USD | Durable Goods Orders (MoM) (Apr) | 0.5% | 1.3% | |
USD | Initial Jobless Claims | 275K | 278K | |
AUD | RBA Assist Gov Debelle Speaks | |||
USD | Pending Home Sales (MoM) (Apr) | 0.6% | 1.4% | |
USD | FOMC Member Powell Speaks | |||
AUD | RBA Assist Gov Debelle Speaks | |||
JPY | National Core CPI (YoY) (Apr) | -0.4% | -0.3% | |
JPY | Tokyo Core CPI (YoY) (May) | -0.4% | -0.3% |
Government Bond Auctions
May 25 11:03 Sweden Sek 1bn 3.5% 2022 & Sek 3bn 1% 2026 bonds
May 25 11:05 Norway Holds bond auction
May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
May 25 19:00 US Holds 5Yr Notes Auction, 2Yr FRN
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero-coupon/BTPei auction
May 26 17:20 Sweden Details of I/L auction on Jun 02
May 26 19:00 US Holds 7Yr Notes Auction
May 30 11:10 Italy Holds bond auction
Jun 01 10:30 Denmark Holds bond auction
Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl
Jun 01 11:30 UK 1.5% 2021 Gilt
Jun 01 17:20 Sweden Announces details of bond auction on Jun 08
Jun 02 10:30 Spain Holds bond auction
Jun 02 11:03 Sweden Holds I/L bond auction
Jun 02 11:50 France Holds bond auction
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.