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Forex Market UpdateUSDJPY fell shy of testing 112.00 resistance!
Finmin Tanigaki says excessive FX moves undesirable, won't comment on daily market moves; says "Japan's FX stance is unchanged", won't comment on FX intervention policy.
MAJOR HEADLINES â€“ PREVIOUS SESSION
â€¢ Swedish budget balance April, out at 17.5B vs. 9.0B expected.
â€¢ Norwegian industrial production SA (MoM) March, out at 0.7% vs. -1.1% expected.
â€¢ Norwegian ind prod manufacturing SA (MoM) March, out at 0.5% vs. 0.% expected.
â€¢ UK PPI output (MoM) April, out at 0.6% vs. 0.4% expected.
â€¢ UK PPI output core (MoM) April, out at 0.4% vs. 0.25 expected.
â€¢ German factory orders (YoY) March, out at 15.0% vs. 12.4% expected.
â€¢ Canadian housing starts April, out at 218.1K vs. 230.0K expected.
â€¢ UK land registry house price (YoY) Q1, out at 5.05% vs. 4.60% expected.
â€¢ Australian NAB survey April, business conditions -8 to +12, business confidence -6 to +11.
THEMES TO WATCH â€“ UPCOMING SESSION
BOJ is considering upgrading its assessment of Japan"s economy by using the word "expansion" for the first time in 14.5 years. Jiji Press said that if the Policy Board agrees, BOJ will adopt the more bullish assessment in its next monthly report on May 19. Recall, BOJ said the economy "continues to recovery steadily" in its April report. BOJ last used the term "expansion" in October 1991. Jiji cited sources saying BOJ is more willing to upgrade its economic assessment after it found that domestic demand exceeded supply, albeit slightly, in April-June of 2005. The change in wording could fuel speculation that BOJ will raise short-term rates by 0.25% as early as summer.
Very little data to go by today and we expect some position squaring in USD/majors ahead of FOMC rate decision Thursday where another 25bps are expected to take the USD rate to 5.00%. so it looks to be 2 days with intra day tech levels to be the main driver if we are going to see any significant volatility in the upcoming trading sessions.
Note: the support/resistance levels used in the matrixâ€™s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
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