Your forexlive.com ENewsletter

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• Additional market orders
• EURUSD orders
• Italian industrial orders march sa:m/m +1.6% vs -2.5% prev
• Early USD buying meets some stubbon resistance
• European equity markets open mostly higher
• Nikkei 225 closes up 1.47% at 15,360.81
• Think-tank warns that sustained inflation in the UK will seriously hamper Carney & co
• Data coming up today
• Option expiries 10am NY cut
• ForexLive Asia Wrap: USD/JPY sliced 100+ points lower before rapid rebound in early Asia
• Hong Kong press: China halts imports of New Zealand meat over certification dispute
• Reports of Kuroda comments on the wires
• Japan’s economy minister Amari: Economic recovery has begun due to policy measures, next task is to improve capex investment
• US press; 10 things you need to know today, #7 Powerball jackpo…. no, wait, US hits debt ceiling
• More from Amari: Core CPI is showing signs of turning positive due to BOJ’s monetary policy
• AUD levels
• Japan government: Upgrades economic assessment
• Bloomberg article: Japan Biotech Ventures Surge as Abenomics Cash Spurs Speculation
• USD/JPY orders
• Japan data releases later today

Additional market orders Posted: 20 May 2013 01:42 AM PDT Good morning everyone Here are some other orders in the market. USD/CHF Sellers 0.9740, 0.9760. Option barriers at 0.9775, 0.9800. Bids 0.9660, 0.9640, 0.9600 EUR/CHF Sellers 1.2500, 1.2525 (barrier) Buyers 1.2420- 1.2430, 1.2400, 1.2375-80 USD/CAD Sellers 1.0300, 1.0320, 1.0340-50 Bids 1.0240-50, 1.0220

EURUSD orders Posted: 20 May 2013 01:25 AM PDT Attracting a few buyers this morning but not making any further progress at the moment. currently 1.2864 Sellers 1.2880,1.2900,1.2925,1.2940,1.2950, 1.2985, 1.3000 Buyers 1.2840,1.2825,1.2800,1.2790, 1.2770,1,2750

Italian industrial orders march sa:m/m +1.6% vs -2.5% prev Posted: 20 May 2013 01:02 AM PDT y/y nsa -10.00%  vs -7.9% prev industrial sales sa m/m -0.9% vs -1.00% prev  y/y -7.6% vs .4.7% Little of note. EURUSD still looking perky at 1.2865

Early USD buying meets some stubbon resistance Posted: 20 May 2013 12:21 AM PDT Ok, it’s all relative and in the Monday malaise we’re not going to get too excited are we, but the early dollar- buying has been soaked up well  particularly on GBPUSD and EURUSD from 1.5187 and 1.2838 repectively. Currently 1.5200 and 1.2850 Talk of Asian sellers on EURUSD between 1.2850-60. Large Japanese name on bid of USDJPY around here ( 102.62 ) and more buyers lined up at 102.50 AUDUSD  has not fared so well though and is struggling to recover its 20 pip loss from 0.9783 when I sat down three hours ago. Expect a scrappy session across the board.

European equity markets open mostly higher Posted: 20 May 2013 12:09 AM PDT FTSE +0.1% DAX  +0.4% CAC40 0.0% IBEX +0.2% FTMIB -0.9%

Nikkei 225 closes up 1.47% at 15,360.81 Posted: 19 May 2013 11:14 PM PDT highest level since December 2007

Think-tank warns that sustained inflation in the UK will seriously hamper Carney & co Posted: 19 May 2013 10:18 PM PDT The respected Item Club of accountants Ernst&Young, in their latest report, anticipate  a sustained level of inflation  which could seriously limit the BOE’s options over the next few years. Not the sort of news that incoming governor Mark Carney wants to hear. The reports cites global prices rises in food and fuel as well as domestic pressures from higher wages  forcing the headline Consumer Price Index (CPI) inflation to move above 3% this summer – albeit briefly – and then to remain above the Chancellor's 2% target for the foreseeable future. While inflationary pressures should cool in the Autumn, as domestic energy and food prices rise by less than they did at the same time last year, it's unlikely that CPI inflation will dip below 2.5% before 2016. Meanwhile inflation as measured by the Retail Price Index (RPI) will remain above the CPI throughout the period, and start to accelerate away from CPI in 2015 and 2016 as housing costs increase. Continuing high inflation could limit the Monetary Policy Committee's (MPC's) room for manoeuvre on interest rates, while also making it difficult to implement the Chancellor's proposal for more forward guidance Read the full report here

Data coming up today Posted: 19 May 2013 09:28 PM PDT Good day all, I hope you had a fabulous week-end, ready for another week in the fickle world of foreign exchange! Not a lot on the data front in this session but here’s the list at a glance Have a profitable day folks Times BST ( GMT+!)

Option expiries 10am NY cut Posted: 19 May 2013 09:17 PM PDT USDJPY 100.00,101.50,102.00,102.50,103.00 EURUSD  1.2750,1.2800,1.2825,1.2840,1.2850,1.2860,1.2900,1.2930,1.3060 GBPUSD 1.5150,1.5300 AUDUSD 0.9700,0.9750,0.9825,0.9845,0.9850 AUDJPY 101.00 EURCHF 1.2410,1.2425

ForexLive Asia Wrap: USD/JPY sliced 100+ points lower before rapid rebound in early Asia Posted: 19 May 2013 08:54 PM PDT The forex trading headlines for Asia trading today, Monday May 20 The big market-moving event today was Japan's economy minister Amari saying in a Sunday TV interview that "it's being said that the correction of the strong yen is largely completed. If the yen keeps on weakening a lot more, it will have a negative impact on peoples' lives" In other news: Reuters Tankan for Japan manufacturers +7 in May vs. -4 in April, giving the first positive read since May of 2012 Reuters Tankan non-manufacturing index is +19 in May vs. +12 in April, to show the highest since October 2007 New Zealand Performance of Services Index for April 56.1 (vs. prior of 55.4) UK Rightmove House Prices +2.1% m/m (vs +2.1% prior) UK Rightmove House Prices +2.5% y/y (vs. +0.4% prior) More comments from Amari later in the session: Core CPI is showing signs of turning positive due to BOJ's monetary policy, and consumer prices are still in a mild deflationary phase A 'government official' also reportedly conveyed comments made by BOJ head Kuroda:     Natural for long-term yields to rise as inflation expectations pick up     But don't expect long-term yield rise to be sustained, given the BOJ's easing policies New Zealand finance minister English commented on TV over the weekend that New Zealand's rising house prices will increase the pressure on the central bank to raise interest rates, particularly if the housing market keeps growing at rapid rates China halts imports of New Zealand meat over certification dispute Silver had a big fall at the open of trade, down below $US20 before any bounce, dragging gold lower too Most activity today was in the yen, where USD/JPY moved from an above 103.00 open in early New Zealand to trade very briefly below 102 as economy minister Amari's comments diffused through the wires (see comments in first bullet point, above). It bounced quickly back up to 102.85/90 though and by the time the Tokyo market opened it had settled into a narrow range around 102.80, with bids coming back into the market 102.50/70 and offers above 103.00. Elsewhere it was subdued on a very light data day to open the week. GBP/USD traded a narrow range around 1.5180 after touching just below 1.5160 early. EUR/USD was bid at 1.2805/10 and recorded highs of 1.2845/50 with some EUR/JPY-induced volatility. AUD and NZD were bid through the session, NZD/USD up to 0.8115/20 and AUD/USD 0.9770/75.

Hong Kong press: China halts imports of New Zealand meat over certification dispute Posted: 19 May 2013 08:53 PM PDT Hundreds of tonnes of frozen meat from New Zealand is  sitting on Chinese docks after China halted imports from the country due to a certification dispute China is New Zealand's largest export market and its largest consumer of sheep meat. China has blocked all New Zealand beef and sheep meat that has arrived there in the past two or three weeks Exporters changed the branding on their certificates in March after New Zealand government departments merged. Because the meat is transported in ships, he said, it would have taken several weeks before products with the new branding arrived. There is no health or safety issue and officials are working to resolve the issue China halts imports of New Zealand meat over certification dispute

Reports of Kuroda comments on the wires Posted: 19 May 2013 07:58 PM PDT A ‘government official’ is reportedly conveying comments made by BOJ head Kuroda: Natural for long-term yields to rise as inflation expectations pick up But don’t expect long-term yield rise to be sustained, given the BOJ’s easing policies JGB yields have risen recently, and in a very volatile manner. Its this rise Kuroda is addressing

Japan’s economy minister Amari: Economic recovery has begun due to policy measures, next task is to improve capex investment Posted: 19 May 2013 07:52 PM PDT Japan’s economy minister Amari is speaking with reporters in Tokyo

US press; 10 things you need to know today, #7 Powerball jackpo…. no, wait, US hits debt ceiling Posted: 19 May 2013 07:46 PM PDT OK, my eye was first drawn to item number 7: 7. WINNING POWERBALL TICKET SOLD IN FLORIDA The winning Powerball ticket, worth a $590.5 million jackpot, was sold … in Florida … and right now, it’s the sole winner of the largest ever Powerball jackpot But I suppose its number 1 I should be more interested in: The U.S. bumped up against its borrowing limit Sunday, forcing the Treasury Department to employ “extraordinary measures” to make sure the government keeps paying its bills. Link, but more detail here (on the debt ceiling, not Powerball). Goodness knows what dastardly impact this will have on US stockmarkets. They might not make a record high again today

More from Amari: Core CPI is showing signs of turning positive due to BOJ’s monetary policy Posted: 19 May 2013 07:46 PM PDT Japan’s economy minister Amari speaking to reporters in Tokyo. Also: Says consumer prices are still in a mild deflationary phase - USD/JPY has stabilized since Amari’s weekend comments roiled the yen crosses this morning

AUD levels Posted: 19 May 2013 07:27 PM PDT We’re at resistance here on the day in AUD/USD around 0.9770/75 Higher up there is more selling 0.9815/25, with some offering interest ahead of here at 0.9798/03, higher again offers around 0.9850 On the downside bids at 0.9735/40

Japan government: Upgrades economic assessment Posted: 19 May 2013 07:03 PM PDT In its monthly report for May, the Japanese government has upgraded its assessment of the economy Says economy is gradually recovering Says exports are showing signs of recovery Upgrades factory output and that output is gradually recovering - Is talking its book (OK, I made that last one up ). ADDED: Reuters article – with bonus phot0 … is that PM Abe driving a rice planting machine?

Bloomberg article: Japan Biotech Ventures Surge as Abenomics Cash Spurs Speculation Posted: 19 May 2013 06:50 PM PDT Five of the 10 best-performing stocks this year are traded on JASDAQ. Bloomberg cite the example of Euglena, which is up 10-fold this year. The company said its developing single-cell algae based products, including jet fuel, which it expects to supply steadily by 2018. There’s also Japan Tissue Engineering, which is up by a factor of 9 this year after winning insurance-reimbursement approval from Japan's Health Ministry for two types of manmade cartilage and skin. Looks like Tokyo is the new wild west of technology investment with all that free Abenomics cash sloshing around. Bloomberg

USD/JPY orders Posted: 19 May 2013 06:11 PM PDT Bids very close by, from 102.70 down to 102.50, the talk is the bids are large around the 102.50 level. They’ll be perhaps upset they missed the move to 102 earlier today. Offers coming in 103.00-10, with stops above last week’s highs around 103.30 and higher.

Japan data releases later today Posted: 19 May 2013 05:38 PM PDT Not much in the way of data releases out of Asia until 0500GMT when we get coincident and leadng indices out of Japan. Full name, for those interested is New Composite Index of Business Cycle Indicators Leading Index, from the Economic and Social Research Institute (part of the cabinet office). Japan Coincident Index, March final (prior was 93.3) Japan Leading index, March final (prior was 97.6) Then at 0530GMT we get: Nationwide department store sales for April (prior was +3.9%) Also Tokyo department store sales for April (prior was +6.4%) At 0600GMT we get: Machine Tool Orders for April (final) (prior was -24.1%) None of these releases is an important market focus today.

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