By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The USD/JPY is trading at 80.75. The Japanese yen weakened after the BoJ decision, with the dollar buying ?81.25, up from ?80.94 in late North American trading Thursday.
The Bank of Japan on Friday increased the size of its asset purchase program by about 5 trillion yen ($61.7 billion), meeting some analysts’ expectations but falling short of the aggressive action that economists say is required to end the nation’s deflation.
The central bank, which also left its policy interest rates unchanged in the range of 0% to 0.1%, said it will increase the size of its asset purchases to ?70 trillion from about ?65 trillion at present.
In its policy statement, the central bank said its latest decision was in keeping with the “powerful monetary easing” that it has been pursuing of late.
Earlier in the day, investors had sifted through a batch of Japanese data released just before the market open, including a weaker-than-expected rise in industrial production but a surprise jump in retail sales, ahead of the central bank decision.
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 26-27th, 2012 actual v. forecast
|
GBP |
Nationwide Consumer Confidence |
53 |
42 |
44 |
|
|
GBP |
BBA Mortgage Approvals |
31.9K |
34.3K |
32.8K |
|
|
GBP |
CBI Distributive Trades Survey |
-6 |
-4 |
0 |
|
|
EUR |
German CPI (MoM) |
0.1% |
0.1% |
0.3% |
|
|
USD |
Initial Jobless Claims |
388K |
375K |
389K |
|
|
USD |
Continuing Jobless Claims |
3315K |
3295K |
3312K |
|
|
USD |
Pending Home Sales (MoM) |
4.1% |
1.0% |
0.4% |
|
|
Apr. 27 |
JPY |
Unemployment Rate |
4.5% |
4.5% |
4.5% |
|
JPY |
Tokyo Core CPI (YoY) |
-0.5% |
-0.4% |
-0.3% |
|
|
JPY |
Industrial Production (MoM) |
1.0% |
2.4% |
-1.6% |
|
|
JPY |
Retail Sales (YoY) |
10.3% |
9.8% |
3.4% |
|
|
JPY |
Interest Rate Decision |
0.10% |
0.10% |
0.10% |
Economic Events for April 30, 2012 for the Asian and US Markets
13:30 USD Core PCE Price Index
The Core Personal Consumption spending (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
14:45 USD Chicago PMI
The Chicago Purchasing Managers’ Index (PMI) determines the economic health of the manufacturing sector in Chicago region. A reading above 50 indicates expansion of the manufacturing sector; a reading below indicates contraction. The Chicago PMI can be of some help in forecasting the ISM manufacturing PMI.
18:45 NZD Labor Cost Index The Labor Cost Index measures the change in the price businesses pay for labor, excluding overtime. It is a leading indicator of consumer inflation.
21:00 CNY Chinese Manufacturing PMI
China Manufacturing Purchasing Managers Index (PMI) provides an early indication each month of economic activities in the Chinese manufacturing sector. It is compiled by China Federation of Logistics & Purchasing (CFLP) and China Logistics Information Centre (CLIC), based on data collected by the National Bureau of Statistics (NBS).Li & Fung Research Centre is responsible for drafting and disseminating the English PMI report. Every month questionnaires are sent to over 700 manufacturing enterprises all over China. The data presented here is compiled from the enterprises responses about their purchasing activities and supply situations. The PMI should be compared to other economic data sources when used in decision-making.
21:30 AUD House Price Index
The Australian House Price Index (HPI) measures the change in the selling price of homes in the nation’s eight state capitals. It is a leading indicator of health in the housing sector.
Government Bond Auctions (this week)
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 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
Originally posted here
