Your forexlive.com ENewsletter

---

• Eurozone business climate may: -0.76 vs -0.87 exp
• May EU consumer sentiment -21.9 vs -21.9 exp
• Indecision in USD/JPY
• GBPUSD orders
• Former BOJ deputy governor Iwata: Difficult to achieve price target in 2 years
• BOJ’s dep gov Nakaso doesn’t see a spike in long-term interest rates
• USDJPY orders
• Japan’s Hamada not concerned about rise in long-term rates
• April Italian PPI -0.4% vs 0.0% prior m/m
• EURUSD orders
• European equity markets open marginally lower
• BOJ to buy long-term JGBs 8-10 times in June vs 8 in May
• USDJPY posts lows of 100.47 but bounces back
• Nikkei closes down 5.15% at 13,589.03
• UK Nationwide house price index may: m/m +0.4% vs +0.4% exp
• Japan’s Amari says govt is closely watching JGBs
• Gold has another look above 1400
• Swiss Q1 GDP: q/q +0.6% vs +0.2% exp
• USDJPY lower again as Nikkei continues to fall
• Nikkei posts new session lows of 13,743.54

Eurozone business climate may: -0.76 vs -0.87 exp Posted: 30 May 2013 02:00 AM PDT -0.9 prev economic sentiment 89.4 vs 89.00 exp  88.6% prev industrial sentiment  -13 vs -13.1 exp -13.8 prev

May EU consumer sentiment -21.9 vs -21.9 exp Posted: 30 May 2013 02:00 AM PDT  Prior -22.3 Consumer inflation expectation 15.4 vs 15.8 prior Selling price expectaiton -4 vs -3.6 prior. Revised to -3.7

Indecision in USD/JPY Posted: 30 May 2013 01:58 AM PDT I really don’t know what to make of these movements. They are going with the grain one minute and against it another. The rise in treasury yields is usually bullish but the severity of the rise has had the opposite affect. The good US data and Moody’s US banking upgrade was bullish as we saw, but has since been wiped out. The rise in JGB’s, the volatile Japanese stock market, BOJ action, reducing foreign purchases, it’s all muddied the waters somewhat. The BOJ seem to be getting themselves stuck between a rock and a hard place over JGB’s and the stock market. The natural order of things would see both rise on an economic recovery yet the BOJ is trying to temper those rises. That’s fine as if they let things get away from them it will do more damage than good, but it’s a very fine line they are walking. Already there’s questions being raised over whether Abe, and more so Kuroda have really got a grip on things. That alone may be enough to upset the apple cart and make things a hell of a lot harder. I’ve banged on about it until I was blue in the face that the talking was done and the market and Japan needed to see some action. As usual the market is getting impatient and so are the natives it seems. So what does that do for the yen? It looks a little lost at the moment and some of the gloss has come off. For now, it looks like it’s taking a breather. The threat of further dollar strength is still in the air and it probably won’t wear off anytime soon, but it’s now going to be opposed by possible Japanese uncertainty, meaning it’s going to be a two way market rather than the one way market it’s been for the last seven or so months. That’s going to make attempts at further massive gains hard fought and not the easy ride it once was. Overall the upside is favoured. The Japanese upper house elections in July will be the third part of Abenomics and should he be successful then we should get another run up n sentiment. That’s in the future and we have to deal with the here and now so let’s look at what we’ve got. We first broke important support in the 101.35/40 area and then the 100.70 area but there was no real follow through and we’re back above 100.70. The early April/May support line has been broken and is now acting as resistance along side the 100 H4ma at 101.57. There is minor support at 100.39 but 100 is the big focal point again and the place where a lot of people are looking to load up for the next push higher. The 200 H4ma is also pushing up to this level and is at 99.97 as of today so the support is mounting up. If we get down that far then a long against the level with a stop reverse just below would be the sensible play much like it was on the way up. Above we have Mike’s orders and the first technical resistance is at 102.20. With exporters coming in towards 102 and at 102.50 the’re plenty to chew through on a move higher.

GBPUSD orders Posted: 30 May 2013 01:55 AM PDT After lagging behind the move yesterday we’ve seen the pair play catch-up to 1.5186. Still good sell interest at 1.5200 to overcome though. currently 1.5174 Sellers 1.5190,1.5200,1.5220,1.5250,1.5260,1.5280,1.5300 Buyers  1.5150,1.5120,1.5100,1.5085,1.5075,1.5050,1.5020,1.5000

Former BOJ deputy governor Iwata: Difficult to achieve price target in 2 years Posted: 30 May 2013 01:42 AM PDT 2% price goal possible if mid-term 2% real growth reached Excessive yen depreciation may lead to stagflation due to reliance on energy imports Former BOJ man Kazumasa Iwata is now the president of the Japan centre for economic reasearch.

BOJ’s dep gov Nakaso doesn’t see a spike in long-term interest rates Posted: 30 May 2013 01:39 AM PDT more Japanese jaw-boning out on reuters says the govt’s growth strategy and structural reforms are of critical importance to counter the effects of BOJ’s “ultra-loose” policy BOJ expects its latest steps on flexible market operations to help suppress increased bond volatility USDJPY rightly unfazed at this needless repetition   100.71

USDJPY orders Posted: 30 May 2013 01:17 AM PDT After this morning’s move lower here’s what’s out there now. currently 100.75 Sellers 100.90,101.00,101.20,101.50,101.80,1.0200 Buyers 100.50,100.40,100.20,100.00,99.80,99.50

Japan’s Hamada not concerned about rise in long-term rates Posted: 30 May 2013 01:04 AM PDT PM Abe’s advisor on reuters just now says not a concern when real interest rates are so low volatility in stock market to be expected USDJPY trying to stage a recovery at 100.78

April Italian PPI -0.4% vs 0.0% prior m/m Posted: 30 May 2013 01:03 AM PDT Y/Y -1.0% vs -0.1% prior.

EURUSD orders Posted: 30 May 2013 12:41 AM PDT Consensus still appears to want to fade the rallies to 1.3000 but after yesterday’s reversal no one’s taking anything for granted.. high so far today of 1.2986. currently 1.2962 Sellers  1.2990,1.3000,1.3015,1.3030,1.3050,1.3085,1.3100 Buyers 1.2950,1.2930,1.2910,1.2900,1.2880,1.2850,1.2835

European equity markets open marginally lower Posted: 30 May 2013 12:11 AM PDT FTSE -0.1% DAX  -0.2% CAC40 -0.1% IBEX -0.5% FTMIB -0.2%

BOJ to buy long-term JGBs 8-10 times in June vs 8 in May Posted: 30 May 2013 12:09 AM PDT statement out on the wires will total around 7 trillion yen says it may increase JGB buying operations as needed A definite attempt to keep a lid on JGB yields. USDJPY up to 100.69

USDJPY posts lows of 100.47 but bounces back Posted: 29 May 2013 11:57 PM PDT The pair has just finally taken out the strong support at 100.50 to post lows of 100.47 No follow through on stop-loss selling just yet though as we rebound quickly to 100.64. USD better bid elsewhere. EURUSD 1.2952   GBPUSD 1.5148  AUDUSD 0.9668

Nikkei closes down 5.15% at 13,589.03 Posted: 29 May 2013 11:06 PM PDT -737.43 points A late dip on the close shows signs of fragility still. now we have to see what the futures do Session high  14,098.16. low 13,555.66

UK Nationwide house price index may: m/m +0.4% vs +0.4% exp Posted: 29 May 2013 11:00 PM PDT -0.1% prev y/y +1.1% vs +0.9% exp +0.9% prev Not a game changer GBPUSD 1.5167

Japan’s Amari says govt is closely watching JGBs Posted: 29 May 2013 10:59 PM PDT The econ min out on reuters says  BOJ is taking appropriate action through close communication with JGB market participants Nikkei sees further gains from its 13,570 lows.. now  13,676 USDJPY up to 100.82

Gold has another look above 1400 Posted: 29 May 2013 10:54 PM PDT The Nikkei – based jitters have produced an interest to buy the shiny stuff this morning and its jumped to 1407 so far Next resistance comes in at 1414 that we saw on 22 May Currently1403

Swiss Q1 GDP: q/q +0.6% vs +0.2% exp Posted: 29 May 2013 10:46 PM PDT +0.3% prev revised up from +0.2% y/y +1.1% vs +0.9% exp   +1.4% prev Swissy is little changed on the data having already seen USDCHF and EURCHF fall significantly on the back of the JPY buying Currently  0.9583 and 1.2432

USDJPY lower again as Nikkei continues to fall Posted: 29 May 2013 10:35 PM PDT 100.66 now Nikkei down 5% at 13,610 just off lows of 13,600

Nikkei posts new session lows of 13,743.54 Posted: 29 May 2013 10:11 PM PDT Currently 13,755, down 3.97% USDJPY did indeed cap on that brief look back above 101.00 and is down again to 100.88 USD being sold elsewhere too.. EURUSD  up to 1.2973  GBPUSD 1.5170 AUDUSD 0.9690

You are subscribed to email updates from ForexLive To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610