IronFX Daily Commentary by Charalambos Pissouros | 26/07/2016
July 26, 2016 8:31 am
Yen gains on news of the fiscal package size • JPY recovered some of its recent losses following reports on the size of the government’s planned fiscal stimulus package. • Reports indicated a 6 tln yen package. This may have disappointed investors, as market chatter suggested expectations of 10-20 tln yen. • Given that much of the speculation for BoJ easing on Friday is already priced in, JPY could continue strengthening until the meeting. • The currency’s direction will depend on the quantity and quality of any stimulus the BoJ introduces. • Aggressive easing is needed to weaken the yen materially.
Today: • US: Prel. Markit services PMI for Jul. and new home sales for Jun. Both exp. to have risen somewhat. The S&P/Case-Shiller house price index for May is exp. to accelerate. CB consumer confidence index is exp. to decline. Net-net, these could support USD.
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Yen gains on news of the fiscal package size
• JPY recovered some of its recent losses following reports on the size of the government’s planned fiscal stimulus package.
• Reports indicated a 6 tln yen package. This may have disappointed investors, as market chatter suggested expectations of 10-20 tln yen.
• Given that much of the speculation for BoJ easing on Friday is already priced in, JPY could continue strengthening until the meeting.
• The currency’s direction will depend on the quantity and quality of any stimulus the BoJ introduces.
• Aggressive easing is needed to weaken the yen materially.
Today:
• US: Prel. Markit services PMI for Jul. and new home sales for Jun. Both exp. to have risen somewhat. The S&P/Case-Shiller house price index for May is exp. to accelerate. CB consumer confidence index is exp. to decline. Net-net, these could support USD.
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To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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