The start of the week in the Tokyo-Asian markets sees subdued movements. While the Nikkei Average has modestly hit record highs, the atmosphere lacks fervor, with a steady but unspectacular ascent. In China, the ongoing National People’s Congress until the 27th has resulted in minor declines in Chinese and Hong Kong stocks. US bond yields have slightly declined, and crude oil futures are showing softness. Amidst this, the USD/JPY pair is maintaining its range between 150.29 and 150.57, similar to the levels seen at the end of last week.
Some movement has been observed in NZD selling. Several commercial banks have indicated expectations of a rate hike, but the NZ Shadow Board (composed of nine economists and businessmen) reacted to this by recommending that the Reserve Bank of New Zealand keep interest rates unchanged at this week’s monetary policy meeting, leading to the observed reaction.
In terms of economic indicators to be released in the foreign markets later, only the US new home sales figures for January are anticipated, with the market expecting an increase from the previous 664,000 to 684,000 units. Otherwise, there are no major economic indicators scheduled for release.
Market attention seems to be directed towards statements from financial authorities in Europe and the UK. In ECB-related news, speeches are scheduled from ECB President Christine Lagarde, as well as central bank governors from Croatia and Greece. In terms of the Bank of England, meetings are planned with the attendance of the Deputy Governor, Ben Broadbent, and Chief Economist, Andy Haldane.
Following the recommendation from the NZ Shadow Board, NZD moved sooner than expected. Since I was considering a selling perspective, I’ll be looking for opportunities to consider a short entry if there’s a chance.
