EUR/JPY Fundamental Analysis – December 3, 2015 – Forecast

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Published: Dec 2, 2015, 05:33 UTC

Analysis and Recommendations: The EUR/JPY is flat in the morning session with a lack of data as traders wait on the ECB announcement on Thursday. Markets

EUR/JPY Fundamental Analysis – December 3, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY is flat in the morning session with a lack of data as traders wait on the ECB announcement on Thursday. Markets are expected to show little activity ahead of the ECB and the NFP, but there is a wide array of economic data once the European session opens including eurozone inflation and then the ADP payroll report in the US. The pair is trading at 130.65.

Asian stock markets wavered on Wednesday after downbeat US manufacturing data raised questions about how aggressive the Federal Reserve would be when hiking interest rates, while the dollar retreated from 8-1/2-month highs.

Data on Tuesday showed the US manufacturing sector contracted last month to its weakest level since June 2009, though construction spending rose in October to the highest level since December 2007.

While the manufacturing data in itself did not seem to shake expectations that the Fed likely will start raising rates in mid-December, it renewed debate about the pace of further rate increases and the potential impact on global capital flows.

The euro pushed higher against the dollar and yen on Tuesday on fresh signs of improvement in the eurozone economy that raised doubts about the ECB expanding its stimulus. Persistent economic weakness has underpinned assumptions for two months that the ECB will expand its quantitative easing in the December policy review.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	GDP (YoY) (Q3)	2.5%	2.4%	1.9%
AUD	GDP (QoQ) (Q3)	0.9%	0.8%	0.3%

Upcoming Economic Events that you should be monitoring:

Thursday, December 3, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Nov)		55.0	54.9
EUR	Deposit Facility Rate (Dec)		-0.30%	-0.20%
EUR	Interest Rate Decision (Dec)		0.05%	0.05%
EUR	ECB Press Conference
USD	Fed Chair Yellen Testifies
USD	ISM Non-Manufacturing PMI (Nov)		58.0	59.1