AceTraderFx: Intra-Day Market Moving News & Views & data to be released today

[acetraderfx]

AceTraderFx Mar 16: Intra-Day Market Moving News and Views (USD/JPY)

Intra-Day Market Moving News and Views (USD/JPY)
16 Mar 2016 02:06GMT

USD/JPY - ...... Dlr pared yesterday's sharp losses and jumped in Asian morning on BoJ Kuroda's dovish remarks. Speaking in parliament, Bank of Japan Governor Haruhiko Kuroda said that it was theoretically possible for the central bank to cut interest rates to around minus 0.5 percent. But he could not say at this moment which policy tools the BOJ would use in case it decided to expand monetary stimulus again, saying that it would depend on economic conditions at the time.

The BOJ added a negative interest rate policy to its massive asset-buying programme in January and began charging a 0.1 percent interest on a portion of excess reserves financial institutions park with the central bank.

Japan's PM Shinzo Abe is meeting with foreign economists to help him prepare for hosting a Group of Seven summit that will be hosted by Japan in May, and U.S. Nobel laureate and economist Joseph Stiglitz said that he had Shinzo Abe to delay a sales tax increase scheduled for next year and focus more on fiscal spending to boost a recovery from recession.
Stiglitz told Abe that G7 need to coordinate policy as weak aggregate demand was harming the global economy and contributing to income disparity.

The G7 talks, according to some economists, could give Abe a convenient reason to postpone tax hikes, relax fiscal austerity and and introduce more stimulus to avoid relying too much on monetary policy.
"A consumption tax increase now would be going in the wrong direction," said Stiglitz, a professor at Columbia University. "This is a time to have stimulating fiscal policy."

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

The greenback remains under pressure in Asia after yesterday's unchanged Fed rate decision

AceTraderFx Mar 17: Intra-Day Market Moving News and Views

17 Mar 2016 02:03GMT

USD/MAJORS - The greenback remains under pressure in Asia after yesterday's unchanged Fed rate decision. The Fedheld interest rates steady on Wednesday and indicated that moderate U.S. economic growth and "strong job gains" would allow it to tighten policy this year, with fresh projections showing policymakers expected two quarter-point hikes by the year's end, half the number seen in December.
The U.S. central bank, however, noted that the United States continues to face risks from an uncertain global economy.

In a press conference, Fed Chair Janet Yellen said it remained to be seen whether a recent firming in U.S. core inflation, which excludes volatile energy and food components, would be sustained.
Fed policymakers projected weaker economic growth and lower inflation this year and lowered their estimate of where the targeted lending rate would be in the long run to 3.30 percent from 3.50 percent - a signal that the economic recovery would remain tepid.

The interest rate outlook is a shift from the four hikes expected when the Fed raised rates in December for the first time in nearly a decade. The majority of policymakers now said they expected it would be appropriate to raise rates by about a half a percentage point by the end of this year.
The new rate outlook came as the Fed attempts to steer through recent global market volatility and keep its rate hike plans somewhat intact.

The Fed had adopted a cautious approach at its last policy meeting in January, amid a selloff on financial markets, weaker oil prices and falling inflation expectations. As in its January policy statement, the Fed did not say directly how it regards the balance of risks to the U.S. economy.

Fed policymakers also see continued improvement in the job market, with the unemployment rate expected to decline to 4.7 percent by the end of the year and fall further in 2017 and 2018.
Fed policymakers marked down their forecast for inflation this year to 1.2 percent from 1.6 percent, but see it recovering to close to the central bank's 2 percent medium-term target next year.
Kansas City Fed President Esther George was the only policymaker to dissent on Wednesday.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 18: Intra-Day Market Moving News and Views (USD/JPY)

Intra-Day Market Moving News and Views (USD/JPY)
18 Mar 201601:10GMT

USD/JPY - ...... Bank of Japan- BOJ made two proposals, one to expand the bank's massive asset-buying programme and another to add negative interest rates to asset purchases, at the January rate review, minutes of the meeting showed on Friday.
The BOJ eventually decided to adopt the negative interest rate policy after several members argued the move would help forestall the risk of external factors delaying the eradication of Japan's "deflationary mindset," the minutes showed.

The BOJ unexpectedly deployed the negative interest rate policy in January to stimulate the economy, although four of the nine board members dissented the decision, which drew criticism from lawmakers for failing to boost stock prices or arrest an unwelcome rise in the yen.
The central bank kept policy settings unchanged at a subsequent meeting in March but offered a bleaker view on the economy, signalling its readiness to roll out further stimulus if needed to hit its ambitious 2 percent inflation target.

In a separate news conference, Japan chief govt spokesman, Chief Cabinet Secretary Yoshihide Suga comment that it is not true that the government had started in considering a sales tax hike delay, and that that there was no change in plans for Japan to increase the sales tax next year, unless any major financial crisis or natural disaster happened.
The Yomiuri newspaper reported on Friday that Prime Minister Shinzo Abe was considering delaying for a second time a planned increase in the nation's sales tax if the economy continued to stagnate.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 18: Intra-Day News and Views (USD/JPY) & data to be released today

Intra-Day Market Moving News and Views
18 Mar 2016 03:00GMT

USD/JPY - ..... Dlr remains under pressure in nervous Tokyo trading after yesterday's brief but sharp jump from 110.67 to as high as 112.00 at New York open, traders cited such unusual move was on market report of rate check by BoJ, however, price quickly erased intra-day gain and fell back to as low as 110.97 before trading sideways in directionless New York afternoon session.

The fact that price has fallen in Asia due to renewed weakness in the Nikkie (currently down 320 points at 16616), suggesting yen-buying may continue.
Initial bids are noted at 110.70-60 with stops below there, however, more buying interest is touted at 110.40-30 with fairly large stops below 'psychological' level at 110.00.
Offers have been lowered to 112.00/10 and more above with stops above 111.60.

Data to be released on Friday:

Germany producer price index, Eurozone labour cost, U.S. Philadelphia Fed business index, Reuters/University of Michigan consumer sentiment index, Canada CPI and retail sales.
AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 21: Intra-Day Market Moving News and Views (GBP/USD)

Intra-Day Market Moving News and Views
21 Mar 2016 02:01GMT

GBP/USD - ..... Cable fell at New Zealand open on Monday and weakened to intra-day low of 1.4430 on renewed 'Brexit' concern. British PM David Cameron was forced into a hasty cabinet reshuffle on Saturday as the dramatic resignation of a senior minister threatened to widen divisions over Europe within the ruling Conservative party.

The rancorous departure of Work and Pensions Secretary Iain Duncan Smith, a leading campaigner for Britain to quit the European Union, also deals a blow to the political ambitions of finance minister George Osborne, commentators said.
Cameron and Osborne are both urging Britons to vote to remain in the EU in a June 23 referendum but many Conservative lawmakers and activists favour a "Brexit". The issue has riven the party for decades.

Duncan Smith in his resignation letter on Friday, cited cuts to disability benefits outlined in Osborne's annual budget last week, which also included tax cuts for richer households. He complained about pressure from the Treasury to cut welfare payments in order to meet fiscal conditions set out by Osborne.

Reuters reported a British vote to leave the European Union could cost the economy 100 billion pounds ($145 billion) and 950,000 jobs by 2020, according to research commissioned by employers' group the Confederation of British Industry (CBI).
The CBI said "Brexit" would deliver a serious shock to the British economy, regardless of any trade deals the country could negotiate with its former European partners.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 22: Intra-Day Market Moving News and Views (USD/JPY)

Intra-Day Market Moving News and Views (USD/JPY)
22 Mar 2016 02:38GMT

USD/JPY - Japan FinMin Aso told reporters after a cabinet meeting on Tuesday that the Japanese economy's fundamentals were firm and there was no need to adopt fresh fiscal spending to stimulate the economy, and they we need to continue to coordinate with the international community.
Aso made the remark when asked about growing calls in some quarters for Japan to take a leadership role as G7 chair in coordinating fiscal steps to boost domestic demand.

While their EconMin Ishihara speaking to reporters today that the effects of the Bank of Japan's surprise negative interest rate policy on Japan's real economy are not yet clear. They would need to monitor for about 3 months to see the effects of negative rate policy and to gauge the impact.
The BOJ unexpectedly cut a benchmark interest rate below zero in January, stunning investors with another bold move to stimulate the economy.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 23: Fed Reserve Bank Harker is optimistic that wage pressures will influence U.S. inflation measures

Intra-Day Market Moving News and Views
23 Mar 2016 00:12GMT

USD/MARJORS - President of Federal Reserve Bank of Philadelphia Patrick Harker in a meeting, telling the reporters that he is "pretty optimistic" that wage pressures will influence broader U.S. inflation measures, and that Fed should consider another rate hike if economy continues on path with all fomc meetings in play for future rate rise.
He will back more rate hikes than median Fed 'dots' forecast, the supported holding rates steady last week in part due to recent market volatility.
He added that the core inflation moving is in the right direction, and with the oil appears to have stabilized or bottomed, and that they need to continue to "get on with" rate hikes, economy resilient.

Further, he thinks that there is a strong case to continue to raise rates and a need to tighten moves that hang on economic conditions. They would prefer to hike rates more than twice this year, and it's ok to overshoot 2 pct inflation target.
With the monetary policy limited, that cannot boost U.S. growth potential, so a needed debate over potential growth at heart of debate within fomc.
He expects subdued growth over the next 2-3 years, and can sees possible 'slow-growth trajectory for some time to come'.
He also suggests tax, education measures that would boost long-term growth prospects.
More of his comments to follow.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

USD dipped low after releasing BoJ minutes before staging a strong rebound

Intra-Day Market Moving News and Views (USD/JPY)
24 Mar 2016 01:14GMT

USD/JPY - ...... Dlr briefly dipped to intra-day low of 112.29/30 after the release of BoJ minutes before staging a strong rebound. Bank of Japan policymakers engaged in heated debate on the pros and cons of their decision in January to adopt negative interest rates, with one even saying it was preferable to roll it back, a summary of their opinions at the March 14-15 rate review showed today.
Quote: "It's preferable to roll back the negative rate policy. But abandoning it immediately after introducing it would cause market confusion and risk eroding trust in the BOJ. With the effects (of the policy) still not clear, we should maintain the policy".
Just published summary of BoJ meeting on March 14-15:
The balance risks to Japan, and the overseas economies remain tilted to downside and while markets remain unstable at the start of year that has no disruption in Japan's economy.
Their exports, production are weak so this may affect capex, together with weak wage growth, data on inflation expectations also falling; chances of consumer inflation excluding volatile food, energy remaining above 1 pct has diminished.

Negative rate policy is exerting intended effects and that is preferable than to abandon it, but rolling it back now would erode confidence in BoJ policy so should maintain it for time being. But the Negative rate policy has not spurred portfolio rebalancing effect as much as expected, and with all the drawbacks of negative rates, such as giving market the impression that BoJ is reaching limits to Japanese Government Bond buying, are materialising.
Again, negative rate policy has strengthened deflationary mindset by causing public anxiety on outlook, now offering exemptions to negative rate policy could heighten market volatility.
Communication with markets has become very difficult as markets beginning to price in further BoJ action and they are aiming for 'surprise' effect which has heightened uncertainty on what could trigger BoJ action, heightened market instability.

MOF rep will closely be watching the markets, coordinating with global community and the communique of Feb G20 finance leaders' meeting will also include on the factors which Japan considered important.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 29: Intra-Day Market Moving News and Views (USD/JPY)

Intra-Day Market Moving News and Views
29 Mar 2016 01:16GMT

USD/JPY - ..... Dlr moves sideways in quiet Asian trading after clocking up 7 days of consecutive gains on Monday. Despite climbing to a fresh 1-week high of 113.69 in holiday-thinned Asian morning yesterday, price briefly dropped to 113.15 in New York morning on soft U.S. PCE data as the lower-than-expected reading quickly led U.S. economists cut their forecast on U.S. Q1 GDP growth.

Looks like range trading below said yesterday's temporary top would continue in Asian morning, however, as dlr is still in trending mode, buying the pair on dips is still the favoured strategy.
Bids are noted at 113.25-15 and more below with stops touted below 112.90, offers are tipped at 113.65/75 and more above with stop reported Book value-bv 114.00.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates

 

[acetraderfx]

AceTraderFx Mar 30: Intra-Day Market Moving News and Views (EUR/USD)

Intra-Day Market Moving News and Views
30 Mar 2016 02:25GMT

EUR/USD - ...... The single currency rebounded after meeting renewed buying interest at 1.1169 in Europe on Tuesday and then later rallied to as high as 1.1303 in New York afternoon as Fed's chair Janet Yellen dragged down the U.S. dollar by strongly emphasizing that the Federal Reserve should proceed cautiously in normalizing its current monetary policy cycle.
Later, euro eased to 1.1283 before moving sideways.

Today, investors should pay attention to the release of a slew of economic reports from euro zone in European session, these include business climate, economic sentiment, industrial sentiment, service sentiment, and consumer confidence.
In addition, Germany will release its inflation data for March at 12:00GMT.

At the moment, bids are noted at 1.1270-60 and then in the region of 1.1250-1.1230 with stops below 1.1220.
On the upside, offers are reported at 1.1310-20 and more around 1.1330 with stops just above 1.1340.

AceTrader - Best Intra-day Forex Trading Strategies
AceTrader has been in FX market since 1984, with proven analytical approach used by professionals and real-time updates