The Stronger Yen ahead of US CPI, hits Japanese stocks

2018-02-14 16:26    HotForex
The Stronger Yen ahead of US CPI, hits Japanese stocks Institution Opinions

USDJPY, H4

Japanese data today disappointed, with Q4 GDP falling to 0.5% q/q growth in they seasonally adjusted figure. The Japan’s Q4 GDP grew 0.5% in Q4’s (q/q, saar) preliminary reading after a revised 2.2% gain in Q3 (was +2.5%). This was a disappointing report, with growth slowing in Q4 by a much larger degree than anticipated. Of course, Japan’s GDP has improved for eight consecutive quarters, which is broadly constructive. But Japan’s economy is a long way from self sustaining growth, consistent with ongoing steady policy from the BoJ.

Despite the disappointing GDP figure, USDJPY is down for a fifth straight session, logging a low earlier in Tokyo trading at 106.84, which is the lowest level seen since November 2016. The breach of 107.00 is reportedly significant, being a massive option level. Yen crosses are mostly lower, too, albeit by comparatively moderately degrees. EURJPY ebbed to a three-session low of 132.36, and AUDJPY also forayed into three-session low terrain. This comes amid a backdrop of mixed equity markets in Asia, where Japanese markets have continued to decline, with the Nikkei 225 closing with a 0.5% loss, contrasting to the 1%-plus gains that the main indexes in South Korea and Hong Kong have seen, while, in the case for USDJPY, there are market narratives pointing to the release of U.S. CPI data later today as likely to evidence still-lacklustre price pressures (given this sentiment, any unexpected acceleration would likely be an explosive dollar buying cue).

Andria Pichidi

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission

StockJPYCPI

0 traders reviewed this item, please leave a reply!

About FXYEAH | Broker Listing | Contribute | Contact Us | Sitemap | TagCloud
Disclaimer: All contents of site are only for your reference, don't suggest you do any investment decision, you should be responsible for your decision.