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2013-07-29 02:29 GMT
Japan's PM Abe rethinks sales tax hike; inflation case strengthens?
Japan's most significant fiscal reform in years, that is, a planned hike from 5% to 8% in sales tax by April 2014, faces the prospects of being delayed or watered down as concerns mount the tax increase may do more harm than good to the delicate economic recovery in the country.
According to a report from Reuters earlier on Monday: "PM Abe says he will decide in the autumn whether to proceed with the first part of the two-stage plan after gauging the state of the economic recovery, especially GDP data that is due on Sept 9."
Right after claiming victory on the upper house elections last week, Abe showed hesitation about the viability of implementing the planned sales tax increase, as he knows this is a time when any false move in the reforms currently underway could jeopardize the economic recovery.
As Abe stated after winning the election: "It will be a difficult decision. The economy is just starting to recover and now is the best chance for Japan to emerge from deflation. I don’t want to lose this chance. At the same time, markets are watching (our progress) on Japan’s fiscal reform."
On one hand, Mr Abe wants to avoid the raise in sales tax, as it will have a negative impact in consumption growth, however, on the other hand, Abe understands the risks of creating an image of 'distrust' by market participants, as he backtracks one of his most vocal pre-election promised mandate on fiscal reforms. -FXstreet.com
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N/A
Bank of Japan Governor Kuroda Speech
2013-07-29 08:30 GMT
UK. Mortgage Approvals
2013-07-29 14:00 GMT
US. Pending Home Sales (YoY)
2013-07-29 23:50 GMT
Japan. Industrial Production (YoY)
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2013-07-29 05:20 GMT
USD/JPY pulling back after Kuroda headlines make the rounds
2013-07-29 04:50 GMT
GBP/USD capped below big 1.54 figure
2013-07-29 04:44 GMT
EUR/USD approaching flat line for the session after initial upside
2013-07-29 04:09 GMT
AUD/JPY hovering above Friday’s lows of 90.56. Target 89.39, but will it bounce first?
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EURUSD
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HIGH
1.32936
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LOW
1.32735
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BID
1.32770
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ASK
1.32775
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CHANGE
-0.01%
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TIME
08:34:38
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OUTLOOK SUMMARY
Up
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TREND CONDITION
Sideway
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TRADERS SENTIMENT
Bearish
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IMPLIED VOLATILITY
Low
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MARKET ANALYSIS - Intraday Analysis
Upwards scenario: Market took a breath after last days gains. Though possible clearance of our next resistive barrier at 1.3297 (R1) would suggest next intraday targets at 1.3316 (R2) and 1.3333 (R3) in potential.
Downwards scenario: Fractal level, formed on the 24-07-2013 provides an important supportive mark at 1.3256 (S1). Any penetration below this level would suggest next targets at 1.3237 (S2) and 1.3217 (S3) in potential.
Resistance Levels: 1.3297, 1.3316, 1.3333
Support Levels: 1.3256, 1.3237, 1.3217
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GBPUSD
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HIGH
1.54043
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LOW
1.53747
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BID
1.53816
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ASK
1.53823
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CHANGE
0.08%
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TIME
08:34:39
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OUTLOOK SUMMARY
Neutral
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TREND CONDITION
Sideway
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TRADERS SENTIMENT
Bearish
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IMPLIED VOLATILITY
Low
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Upwards scenario: Further positive bias development would face next resistive measure at 1.5419 (R1). If the price manages to overcome it we would suggest next intraday targets at 1.5445 (R2) and 1.5470 (R3).
Downwards scenario: Possible recovery action might get acceleration below the support level at 1.5370 (S1). Loss here would suggest next intraday target at 1.5343 (S2) and any weakening below it would then be limited to final support at 1.5316 (S3).
Resistance Levels: 1.5419, 1.5445, 1.5470
Support Levels: 1.5370, 1.5343, 1.5316
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USDJPY
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HIGH
98.34
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LOW
97.633
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BID
97.880
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ASK
97.880
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CHANGE
-0.37%
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TIME
08:34:40
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OUTLOOK SUMMARY
Down
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TREND CONDITION
Down
trend
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TRADERS SENTIMENT
Bearish
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IMPLIED VOLATILITY
Medium
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Upwards scenario: Medium term bias remains negative and possible price appreciation is limited to resistive barrier at 98.21 (R1). Prolonged movement above that level would suggest next intraday targets at 98.46 (R2) and 98.71 (R3).
Downwards scenario: Further market weakening is protected by important technical level at 97.63 (S1). Break here is required to open road towards to interim target at 97.39 (S2) en route to final aim at 97.14 (S3).
Resistance Levels: 98.21, 98.46, 98.71
Support Levels: 97.63, 97.39, 97.14
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