Intraday Market Thoughts

EURJPY Awaits Japan CPI

by Ashraf Laidi
May 30, 2013 20:38

What a difference a day makes as today's USD tumble was attributed to a modest miss in Q1 GDP revision (2.4% vs exp 2.5%), while the important PCE rose to a higher than expected 3.4%. USDX failed to reach the 85 resistance, but support looks to remain intact around 80.70. AUDUSD rebounded on higher than expected Capex spending plans but failed to reach our 0.9700 short. EUR and CHF were among the day's best performers. Tonight's April CPI figures (00:30 London) from Japan are expected to show improved data all around, which may justify the weak-yen policy and support yen crosses. With EUR outperforming most major FX lately, EURJPY will be particulat to watch as Japan's inflation data is released amid 13-month highs in JGB yields.  CAD awaits tomorrow's March GDP figures, which will help determined the fate of our latest USDCAD longs. We have reintroduced USDCHF to the Premium Insights after a long absence, issuing 2 new longs and 2 charts supporting the fundamental rationale. Both GBPUSD shorts were stopped out, while the stop on EURUSD was raised. Full details are seen in the latest Premium Insights.

Act Exp Prev GMT
National CPI (APR) (y/y)
-0.7% -0.9% May 30 23:30
National CPI Ex Food, Energy (APR) (y/y)
-0.7% -0.8% May 30 23:30
National CPI Ex-Fresh Food (APR) (y/y)
-0.4% -0.5% May 30 23:30
Tokyo CPI (MAY) (y/y)
-0.4% -0.7% May 30 23:30
Tokyo CPI ex Food, Energy (MAY) (y/y)
-0.7% -0.7% May 30 23:30
Tokyo CPI ex Fresh Food (MAY) (y/y)
-0.2% -0.3% May 30 23:30

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