FROM: PETER CRUZ DATE: 28th Nov., 2014 – Fri. Market Brief The early spotlight for Japan’s October data dump is focused on the main inflation gauge falling below 1%, a setback, to be sure, in the BOJ’s campaign to hit 2% by next year. But there’s also good news for the BOJ in the Friday reports: a further tightening of the labour market, despite surprisingly weak economic growth. The unemployment rate fell back to 3.5% after rising to 3.6^ in September, the lowest since the mid-1990s. The ration of job offers to job seekers also rose back to 1.10, a multi-year high, after slipping a notch in September. After the inflation rate itself, job market indicators are among the closely monitored at the central bank. Officials there see that as a key element to sustainable inflation and growth, and recovery from the September softening suggests enduring underlying strength. Japan’s industrial output was widely expected to decline in October. After all, domestic auto sales and output were nothing short of dismal. But it didn’t. Output gained a surprise 0.2% on month, following a sharp 2.9% rise in September. What lifted the output? Exports. iPhone effect? Yes, but that’s not all. Japan’s export grew for items that were thought to have long lost competitiveness, such as ships. The yen’s 30% plunge in the past two years has made Japanese products more competitive than ever and has boosted their sales according to a government official. On the data slate there’s German Retail Sales; Japan Housing Starts; Euro-Zone CPI; Euro-Zone Unemployment rate and Euro-Zone ECB 3-year LTRO Repayment on Europe. SELL EUR @ 1.2450 OR BETTER - STOP @ 1.2505 – TARGET @ 1.2300 SELL GBP @ 1.5730 OR BETTER – STOP @1.5780 - TARGET @ 1.5500 – no change BUY USD/JPY @ 118.00 OR BETTER – STOP @ 117.50 – TARGET @ 120.00 SELL CL0115 @ 69.00 OR BETTER – STOP @ 70.00 - TARGET @ 66.50 SELL XAU @ 1190 OR BETTER – STOP @ 1200 - TARGET @ 1175 SELL XAG @ 16.10 OR BETTER – STOP @16.60 – TARGET @ 15.50 – no change GOOD LUCK AND HAPPY TRADING PLS. NOTE: 1. ALWAYS REMEMBER TO PUT STOPS WHENEVER YOU TRADE, MARKETS ARE VERY VOLATILE. 2. THE ABOVE BRIEF IS MY PERSONAL OPINION AND DOES NOT CONSTITUTE ANY PROMISES OR GUARANTEES OF PROFITS. TRADING IN CURRENCIES AND COMMODITIES ARE HIGH RISKS AND IT IS NOT FOR EVERYONE.
Posted on: Fri, 28 Nov 2014 03:13:11 +0000
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