Economic Events: (GMT)
Close of the Asian Markets
00:30 AUD CPI (QoQ) 0.2% 0.6%
The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.
00:30 AUD Trimmed Mean CPI (QoQ) 0.6% 0.3%
The Trimmed Mean Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding the most volatile 30% of items. This data helps illustrate underlying inflation trends.
A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.
05:00 JPY BoJ Monthly Report
The Bank of Japan’s (BoJ) monthly report contains the statistical data that policymakers evaluate when setting interest rates. The report also provides detailed analysis of current and future economic conditions from the bank’s perspective.
20:00 NZD Interest Rate Decision 2.50% 2.50%
20:00 NZD RBNZ Rate Statement
The Reserve Bank of New Zealand (RBNZ) governor decides where to set the rate after consulting senior bank staff and external advisers. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
The Reserve Bank of New Zealand’s rate statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the outcome of future votes.
A higher than expected rate is positive/bullish for the NZD, while a lower than expected rate is negative/bearish for the NZD.
23:00 KRW South Korean GDP (QoQ) 0.4% 0.8%
Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.
A higher than expected reading should be taken as positive/bullish for the KRW, while a lower than expected reading should be taken as negative/bearish for the KRW.
USD/JPY Fundamental Analysis Jan. 25, 2012, Forecast
Analysis and Recommendation:
USD/JPY was trading 77.02 virtually unchanged. The pair is expected to remain trading in tandem for the next day of so. The dollar might pick up some energy after reports in the US, but today will be all about Greece. Investors are wary and stressed over the deal or no deal. It is vitally important to the EU and Greece to announce a firm agreement today.
This morning the Bank of Japan issued the following statement; ( I have edited and highllighted the important information )
The Bank of Japan will encourage the uncollateralized overnight call rate to remain at around
0 to 0.1 percent.
Japan’s economic activity has been more or less flat, mainly due to the effects of a slowdown
in overseas economies and the appreciation of the yen. As for domestic demand, business
fixed investment has been on a moderate increasing trend and private consumption has
remained firm. On the other hand, exports and production have remained more or less flat,
due to the slowdown in overseas economies and the yen’s appreciation as well as the
remaining effects of the flooding in Thailand.
The markets remain under heavy strain, financial conditions in Japan have continued to ease.
The year-on-year rate of change in the CPI (all items less fresh food) is around 0 percent.
As for the outlook, Japan’s economic activity will remain more or less flat for the time being.
After that, the economy is expected to return to a moderate recovery path as the pace of
recovery in overseas economies picks up, led by emerging and commodity-exporting
economies, and reconstruction-related demand after the earthquake disaster gradually
materializes.
The year-on-year rate of change in the CPI is expected to remain at around 0
Upcoming Govt Bond Sales Dates
Jan 25 10:10 Sweden Nominal bond auction
Jan 25 10:30 Germany Eur 3.0bn 3.25% Jul 2042 Bund
Jan 25 16:30 Italy Details BTP/CCTeu on Jan 30
Jan 25 18:00 US Auctions 5Y Notes
Jan 26 10:10 Italy Auctions CTZ/BTPei
Jan 26 18:00 US Auctions 7Y Notes
Jan 27 10:10 Italy BOT auction
Originally posted here
