By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The USD/JPY is trading at 81.18, as all eyes are now on Tokyo, where the Japanese central bank is likelyto hold interest rates at near zero but markets are hoping for another liquidity injection as the economy’s recovery stutters.
The Bank of Japan has already this year said it will pump tens of billions of dollars more into the system to help businesses and try to dig the country out of a painful deflationary cycle.
The euro bought $1.3229 and 107.60 yen in early Asian trade, compared with $1.3215 and 107.49 yen.
The dollar was flat at 81.18 yen.
However, there is still some nervousness about Europe after Britain slipped back into a technical recession as the economy contracted 0.2 percent in the January-March quarter following 0.4 percent shrinkage in the previous three months.
And across the Channel political uncertainty in France and the Netherlands has raised concerns about a fiscal pact agreed by the eurozone last year, while weak economic data has also hit confidence.
Economic Data for April 25-26th, 2012 actual v. forecast
|
GBP |
GDP (QoQ) |
-0.2% |
0.1% |
-0.3% |
|
|
GBP |
GDP (YoY) |
0.0% |
0.3% |
0.5% |
|
|
GBP |
CBI Industrial Trends Orders |
-8 |
-6 |
-8 |
|
|
USD |
Core Durable Goods Orders (MoM) |
-1.1% |
0.5% |
1.9% |
|
|
USD |
Durable Goods Orders (MoM) |
-4.2% |
-1.7% |
1.9% |
|
|
USD |
Interest Rate Decision |
0.25% |
0.25% |
0.25% |
|
|
NZD |
Interest Rate Decision |
2.50% |
2.50% |
2.50% |
|
|
Apr. 26 |
KRW |
South Korean GDP (QoQ) |
0.9% |
0.9% |
0.3% |
|
KRW |
South Korean GDP (YoY) |
2.8% |
3.0% |
3.3% |
|
|
GBP |
Nationwide Consumer Confidence |
53 |
42 |
44 |
|
Economic Events scheduled for April 27, 2012 that affect the NZD, AUD, and JPY
01:00 AUD HIA New Home Sales (MoM) (Mar)
HIA New Home Sales released by the Housing Industry Association presents the number of new home sales in Australia. It indicates the housing market condition. House buyers spend money on furnishing and financing their homes, which stimulates the demand for goods, services, and the employees
05:00 JPY Housing Starts (YoY) (Mar)
The Housing Starts released by the Ministry of Land, Infrastructure and Transport captures how many new single-family homes or buildings were constructed. It shows the strength of the Japanese housing market, which can be considered as the economy as a whole due to Housing Starts” sensitivity to changes in the business cycle
05:00 JPY Annualized Housing Starts (Mar)
The Annualized Housing Starts released by the Ministry of Land, Infrastructure and Transport captures how many new single-family homes or buildings were constructed. It shows the strength of the Japanese housing market, which can be considered as the economy as a whole due to Housing Starts’ sensitivity to changes in the business cycle
12:30 USD Gross Domestic Product Annualized (Q1)
The Gross Domestic Product annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. It is a gross measure of market activity because it indicates the pace at which a country’s economy is growing or decreasing.
12:30 USD Gross Domestic Purchases Price Index (Q1)
The GDP Price Index released by the Bureau of Economic Analysis, Department of Commerce gauges the change in the prices of goods and services. Changes in the GDP price index are followed as an indicator of inflationary pressure that may anticipate interest rates to rise.
12:30 USD Real Personal Consumption Expenditures (QoQ) (Q1)
The Real Personal Consumption Expenditure released by the US Bureau of Economic Analysis is an average of the amount of money the consumers spend in a month on durable goods, consumer products, and services.. It is considered as an important indicator of inflation.
13:55 USD Reuters/Michigan Consumer Sentiment Index (Apr)
The Reuters/Michigan Consumer Sentiment Index released by the Reuters/University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money.
Government Bond Auctions (this week and first week in May)
Apr 27 09:10 Italy BTP/CCTeu auction
Apr 27 09:10 Italy Eur 1.5-2.5bn 4.75% May 2017 & Eur 1.5-2.5bn 5.5% Sep 2022 & Eur
0.75-1.25bn 3.75% Apr 2016 & 4.25% Feb 2019 BTPs
May 01 09:30 UK Auctions 4.5% 2042 Conventional Gilt
May 02 09:10 Sweden Nominal bond auction
May 02 09:30 Portugal Eur 1.25-1.5bn new Nov 2012 & new May 2013 T-bills
May 02 13:00 US Announces details of 3Y Notes on May 08, 10Y Notes on May 09 & 30Y
Bonds on May 10
May 02 14:30 Sweden Details T-bill auction on May 09
May 03 08:30 Spain Bono auction
May 03 08:50 France OAT auction
Click here for updated USD/JPY News.
Originally posted here
