1. 17th
Floor, Tow er 1 The Enterprise Center, 6766 Ayala Avenue corner Paseo de Roxas, Makati City 1200
July 11-15, 2011
By Roxanne Delos Santos
USD/JPY
Time Horizon Bullish Bearish Conclusion
US FOMC Meetings Minute: The minutes
of the Fed’s meeting in Aprildealt with the
means of ending QE2 and normalizing its
monetary policy in light of the
strengthening economy. No QE3 was
announced in the recent meeting.The
agreed objectives areto strivefor
maximumemployment and price stability.
The Fed is likely to raise rates before 2012.
The Bank of Japan left its overnight callrate
at a 0.1% by an agreed vote and continued
its loan program. To increase lending to
businesses connected with growth, an
additional lending facility worth 500 billion
yen was also granted.
U.S. Leaders Resume Debt Ceiling Talks
Sunday (July 10): The debatehas so far
focused on differences over taxes and
spending on federalprograms, but once-
unthinkable changes to SocialSecurity
could now also be on the table,according
Japan Corporate Price Index
increased consensus of 2.4% from
2.2% last month – higher price of
goods sold by corporations,
profitable forbusinesses.
Japan Revised IndustrialProduction
consensus greatly increased from
1.6% June data to 5.7%. This may be
due to the reconstruction plans
heading theirway.
A mass exit fromrisky assets driven
by another turn forthe worse in
Europe would prove supportive for
the Yen as traders unwind carry
trades funded cheaply in the
perennially low-yielding currency.
The sharp jump in ChineseCPI
reported over the weekend may
further reinforce this dynamic,
weighing against growth
Relative interest ratespreads
remain in focus forthe Japanese
Yen, as the currency reacted to the
bitterly disappointing US
Employment report: the yield
advantage of 2-yearUS Treasury
bonds over comparable Japanese
debt tumbled 8 basis points – the
most in over seven months –
leading USDJPY to its biggest daily
decline in sixweeks.
With the upcoming BOJ Monetary
Policy Statement on Tuesday,
Japan will most likely keep it rates
nearzero. Making Yen spending
high, especially when
reconstruction begins. On the
other hand, Fed plans to raise
rates
With Japan Bank Lending
increasing continuously fromApril
2. INTERACTIVE BUSINESS NETWORK ALLIANCE INC.
Friday, October 30, 2015
to The Wall Street Journal. The U.S. will
reach its $14.29 trillion borrowing limit
Aug. 2, but the White House said it wants
the issue solved by July 22.
US Trade Balance of -44.1Bfromthe
previous -43.7B rate. This reduction in
imports is likely due to Japan’s earthquake
and tsunami damaging theirmanufacturing
capacity.
expectations on fears Beijing will
redouble efforts to cool the world’s
second-largest economy.
Japan Reconstruction Minister
Matsumoto resigns, living the
responsibility to Prime Minister Kan.
until this month, together with
other indicators, recovery fromthe
tsunami and earthquake could be
achieved.
Expect USD/JPY to be sideways
with upward bias, since
reconstruction efforts in Japan are
still on the process, considering the
empty position of Japan’s
Reconstruction Minister, China’s
increased CPI ( being a substitute
foryen) and with US striving to
solve the current issue on debt.
Expected Range : 80.50 – 81.50
1 week
3. INTERACTIVE BUSINESS NETWORK ALLIANCE INC.
Friday, October 30, 2015
DJIA
Time Horizon Bullish Bearish Conclusion
Alcoa Inc. (AA) reports Monday,
leading a roster of other heavy
hitters reporting next week.
White House resume talks on a
budget deal with Congressional
leaders, Sunday
US Business Inventories consensus of
0.7% from 0.8% shows that
companies are more likely to
purchase goods once they have
depleted inventories
US Empire State Manufacturing Index
-7.5 to 4.5 forecast.
US Industrial Production, an indicator
of output produced, forecast of 0.4%
from 0.1%, thus boosts business
cycle and is correlated with
employment levels and earnings, etc.
No QE3 was announced in the
recent meeting. The agreed
objectives are to strive for
maximum employment and price
stability. The Fed is likely to raise
rates before 2012.
US Retail sales data is expected to
be flat after a consecutive decrease,
while Core prices arepredicted to
gain 0.1%. Unemployment claims
expected to be 419k, stillover 400k
threshold level.
US Import Price decreased from
0.2% to a consensus of -0.7%,
Change in the price of imported
goods and services purchased
domestically were expected to
decline.
DJIA to be bullish this week
Most Dow Jones stocks are
performing well, businesses
expects more spending,
employment and earnings; and
the efforts by the government
to solve the debt issue as soon
as possible.
Expected Range : 12500 - 12730
1 week
