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Intra-Day Market Moving New and Views
USD/JPY -- .... BoJ Governor Haruhiko Kuroda begins his press conference n says 'household confidence is improving; virtuous cycle of economic activity continues to operate firmly; Japan economy continues moderate recovery despite decline in demand after sales tax hike; overseas economies are recovering, centring on advanced economies, albeit some slack; exports showing weakness; private consumption in firm trend; CPI likely to hit 2% around middle of forecast period between fiscal 2014-16; QQE has been exerting its intended effects; will continue with QQE as long as necessary to achieve 2% goal in a stable manner; will examine both upside, downside risks to economy n make adjustment as appropriate; progress in fiscal discipline is important for Japan.'
The rally in the Nikkei which started on Tue (this in turn caused dlr/yen to rally) n took the index to a 7-month high of 15829 was due to market optimism on the appointment of Japan's new welfare minister, Yasuhisa Shiozaki to make reform in the world's largest pension fund GPIF.
Reuters reported earlier Shiozaki told reporters "safe and efficient" asset management was a priority for the country's pension fund even as the government is set to overhaul the way it invests. He added "the most important thing is that people think the system is trustworthy."
Shiozaki's job will include supervising the country's $1.26 trln pension fund. His previous calls to overhaul Japan's Government Pension Investment Fund (GPIF) have led to expectations he could push for it to invest in riskier assets.
The GPIF has already cut its bond holdings in recent months, as PM Shinzo Abe has been pushing GPIF to invest more in risk assets n less in domestic bonds in order to boost returns. The fund is finalising plans to boost the weighting of domestic stocks in its portfolio as early as this month.
Earlier, Japan Welfare Minister Shiozaki said ' should aim for dafe, efficient management of GPIF assets'.
BoJ keeps monetary policy steady by unanimous vote, pledges to increase monetary base at annual pace of 60-70 trln yen. BoJ board member Kiuchi proposed making 2 pct inflation target a medium- to long-term goal, which was turned down by 8-1 vote.
BoJ said in a statement issed after the meeting:
'Japan's economy continues to recover moderately as a trend;
Japan's economy likely to continue recovering moderately as a trend;
keeps economic assessment unchanged saying effect of tax hike remains;
industrial output continues to recover moderately as a trend but making weak movements;
cuts view on housing investment saying effect of sales tax hike continues;
private consumption remains firm as a trend, effect of sales tax hike gradually easing.'
The greenback pares yesterday's losses in European & NY session n extends o/n bounce fm NY low of 104.75 to 104.94 in Tokyo trading, however, softness in the Nikkei index (currently down 18 points to 15710) limited dlr's rebound.
Despite yesterday's sharp retreat fm a fresh 8-month high of 105.31 as decline in the N225 triggered profit-taking ahead of offers near Jan's 5-year peak at 105.45, downside shud be ltd as improving U.S. economic condition shud attract buyer for greenback, therefore, buying on dips is still the favoured strategy. Offers are noted at 105.00-10 with mixture of offers n stops located at 105.25/30 n around 105.45/50. On the downside, bids are placed at 104.50-40, then 104.25/20 with stops emerging just below 104.00.
USD/JPY -- .... BoJ Governor Haruhiko Kuroda begins his press conference n says 'household confidence is improving; virtuous cycle of economic activity continues to operate firmly; Japan economy continues moderate recovery despite decline in demand after sales tax hike; overseas economies are recovering, centring on advanced economies, albeit some slack; exports showing weakness; private consumption in firm trend; CPI likely to hit 2% around middle of forecast period between fiscal 2014-16; QQE has been exerting its intended effects; will continue with QQE as long as necessary to achieve 2% goal in a stable manner; will examine both upside, downside risks to economy n make adjustment as appropriate; progress in fiscal discipline is important for Japan.'
The rally in the Nikkei which started on Tue (this in turn caused dlr/yen to rally) n took the index to a 7-month high of 15829 was due to market optimism on the appointment of Japan's new welfare minister, Yasuhisa Shiozaki to make reform in the world's largest pension fund GPIF.
Reuters reported earlier Shiozaki told reporters "safe and efficient" asset management was a priority for the country's pension fund even as the government is set to overhaul the way it invests. He added "the most important thing is that people think the system is trustworthy."
Shiozaki's job will include supervising the country's $1.26 trln pension fund. His previous calls to overhaul Japan's Government Pension Investment Fund (GPIF) have led to expectations he could push for it to invest in riskier assets.
The GPIF has already cut its bond holdings in recent months, as PM Shinzo Abe has been pushing GPIF to invest more in risk assets n less in domestic bonds in order to boost returns. The fund is finalising plans to boost the weighting of domestic stocks in its portfolio as early as this month.
Earlier, Japan Welfare Minister Shiozaki said ' should aim for dafe, efficient management of GPIF assets'.
BoJ keeps monetary policy steady by unanimous vote, pledges to increase monetary base at annual pace of 60-70 trln yen. BoJ board member Kiuchi proposed making 2 pct inflation target a medium- to long-term goal, which was turned down by 8-1 vote.
BoJ said in a statement issed after the meeting:
'Japan's economy continues to recover moderately as a trend;
Japan's economy likely to continue recovering moderately as a trend;
keeps economic assessment unchanged saying effect of tax hike remains;
industrial output continues to recover moderately as a trend but making weak movements;
cuts view on housing investment saying effect of sales tax hike continues;
private consumption remains firm as a trend, effect of sales tax hike gradually easing.'
The greenback pares yesterday's losses in European & NY session n extends o/n bounce fm NY low of 104.75 to 104.94 in Tokyo trading, however, softness in the Nikkei index (currently down 18 points to 15710) limited dlr's rebound.
Despite yesterday's sharp retreat fm a fresh 8-month high of 105.31 as decline in the N225 triggered profit-taking ahead of offers near Jan's 5-year peak at 105.45, downside shud be ltd as improving U.S. economic condition shud attract buyer for greenback, therefore, buying on dips is still the favoured strategy. Offers are noted at 105.00-10 with mixture of offers n stops located at 105.25/30 n around 105.45/50. On the downside, bids are placed at 104.50-40, then 104.25/20 with stops emerging just below 104.00.