ZuluTrade Blog
Image

Market View

Bank of Japan unexpectedly expanded its asset- purchase fund...

Wednesday, September 19, 2012 4:03 AM GMT

       Good Morning  ,

 

§  Another one to ease... Bank of Japan unexpectedly expanded its asset- purchase fund by JPY 10 trillion today. USDJPY rose a a consequence to a one month high at 79.21 and Nikkei hit a 4 month high today also. EMG- and commodity currencies remained fairly firm, while EURUSD rallied from 1.3034 in line with a firmer EURJPY.

§  Stocks: Nikkei +1.70 %, Hang Seng +1.24 %, Shanghai Composite +0.48 %, Dow Jones +0.09 %, S+P500 -0.13 %

§  Luxembourg's Prime Minister Juncker said he's for "thorough preparation" for centralized bank supervision in the EU, in interview with Bavarian television. * Said he's "close" to opinion of German Fin Min Schaeuble that supervisor shouldn't directly oversee 6000 banks * Spain will face "very hard conditions" for bailout

§  The Bank of Japan eased monetary policy on Wednesday by boosting asset purchases by double the usual amount, as slowing global demand and mounting tensions with China have hurt chances of a near-term recovery in the export-reliant economy. The central bank increased its asset buying and loan programme, currently its key monetary easing tool, by 10 trillion yen ($127 billion) to 80 trillion yen, with the increase earmarked for purchases of government bonds and treasury discount bills. "We expect today's decision ... will help ensure that Japan's economy resumes a sustainable growth path with price stability," the BOJ said in a statement.

§  Richmond Federal Reserve President Jeffrey Lacker said the shock from the credit crisis may impede efforts by the central bank to quickly bring down unemployment even with the use of record stimulus.

§  Federal Reserve Bank of New York President William C. Dudley said the central bank's new stimulus is vital for boosting "unacceptably slow" improvement in economic growth.

§  Foreign direct investment (FDI) into China fell for the third consecutive month in August as global economic woes continued to weigh heavily.

§  China Data Recap Period Survey Actual Prior * Actual FDI yoy Aug -5.8 % -1.4 % -8.7 %

§  China is likely to grapple with weaker external demand during the rest of 2012 due to the slowing global economy, Shen Danyang, spokesman for the Ministry of Commerce, said on Wednesday.

§  Zhou Xiaochuan says the central bank will keep the continuity and stability of monetary policies and at the same time make adjustments more forward-looking, targeted and effective, Zhou writes in a commentary published in the Financial News. * External environment affecting China's growth are "grim" * Downward pressure on China economy are still "relatively large" * Zhou wrote the article in anticipation of the 18th party congress * Yuan's flexibility has significantly strengthened and is gradually at a reasonable, balanced level * Yuan's use in adjusting balanced of international payments is starting to show

 

§  An official from the Chinese Academy of International Trade, which is a branch of the commerce ministry, Jin Baisong said China should invoke the "security exception" rule under WTO to punish Japan unless Tokyo reverses its decision to nationalise the disputed Senkaku/Diaoyu inlands.

§  Australia Data Recap                Period      Survey      Actual     Prior  

§  * Westpac Leading Index mom   Jul              -             0.4 %     0.5 %

§  Christopher Kent, the RBA's assistant governor for economics, answered questions from the audience at a conference in Canberra: * "It's true to say that it appears as if the exchange rate is somewhat overvalued but it's hard to be too definitive" * Effect of a strong currency on tradables inflation likely to wane * Forecasting exchange rates is difficult, a 'mug's game' * Economic adjustmment smoother than in previous resources booms

§  Standard & Poor's Ratings Services said that it has affirmed its unsolicited 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the Commonwealth of Australia. The outlook remains stable.

§  New Zealand Data Recap    Period    Survey    Actual      Prior

§  * Current Account Balance     Q2      -1.620b   -1.310b  -1.072b

§  * Curr. Acc. to GDP Ratio       Q3        -5.2 %     -4.9 %    -4.5 % rev

 

14:30

US Housing Starts Aug

14:30

Us Building Permits Aug

16:00

US Existing Home Sales Aug

15:45

Fed George

16:30

Fed Bernanke meets with Senate Finance Committee privately

11:00

Eurozone Construction Output Jul

10:30

Bank of England Minutes

11:00

Switzerland ZEW Sep

08:15

Riksbank Ingves

09:00

Riksbank Wickman-Parak

(CET)

Have a nice day !

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.