Yen awaits Abe’s “Third Arrow” announcements We saw that sentiment remained hesitant, as the US major equity indices delivered mixed performances at close yesterday; gains or losses remained marginal however. Equity gains ease after a streak of buying triggered after Janet Yellen’s intervention last week. Yesterday US existing home sales for May registered stronger gains and the preliminary reading for a broader PMI Manufacturing reached fresh highs as well. The USD dollar index was only slightly lower, currently at 80.25. The USD/JPY remained confined in a tight range as the seemingly uneven US economic recovery and the Fed announcements made last week convinced investors that the US central bank will not rush into raising rates. The economic docket throughout the Asian session was fairly quiet, now focus shifts to the Japanese Prime Minister’s policy announcements expected later this morning. Prime Minister Abe is expected to unveil his “Third Arrow”, with such policies expected to include corporate tax cuts, and reforms to the Government Pension investment Fund amongst others. In Asia the situation for major equity indices was pretty much similar with equities manifesting mixed results but it looks like the better US data skewed the balance towards the positive. At 10:30CET sterling traders will be eyeing Mark Carney’s testimony in parliament, to pick up any hints of a possible rate hike. Good Day,
Posted on: Wed, 02 Jul 2014 07:52:06 +0000
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