EUR/JPY Fundamental Analysis September 7, 2012, Forecast

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Analysis and Recommendations:

The EUR/JPY is trading at 99.70 and climbing with traders looking for more risk assets the JPY is losing momentum and the euro is very strong against the crosses after the ECB introduced its sterilized bond buying program.

The ECB will only buy the bonds of countries that have applied to the EFSF/ESM and accepted a concurrent “macroeconomic adjustment programme or a precautionary programme.” ‘Precautionary programme’ refers to a species of program buried deep in the EFSF’s repertoire of credit facilities whereby a country can apply to the EFSF to arrange a backstop. Obviously, the stronger the macro economy of the applicant, the fewer the conditions attached to being brought into the program.

There are a variety of types of these programs specified in the EFSF’s literature already and conceivably there could be more. This ‘conditionality-light’ type of arrangement seems like it is targeting Italy more than Spain.

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

Economic Data September 6, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Sep. 07

 

PEN

 

 

Peruvian Interest Rate Decision 

4.25%

 

4.25% 

 

4.25% 

 

 

 

 

AUD

 

 

AIG Construction Index 

32.2

 

 

 

32.6 

 

 

 

 

AUD

 

 

Trade Balance 

-0.56B

 

-0.30B 

 

-0.23B 

   

 

 

MYR

 

 

Malaysian Trade Balance 

3.60B

 

9.10B 

 

9.20B 

   

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date

Time

Currency

Event

Previous

Sep. 10

00:50

JPY

GDP (QoQ) 

0.3% 

 

02:30

AUD

Home Loans (MoM) 

1.3% 

Government Bond Auction

Date Time Country 

Sep 10 09:30 Germany 

Sep 10 15:30 Italy  

Sep 11 00:30 Japan 

Sep 11 08:30 Holland 

Sep 11 09:10 Greece 

Sep 11 09:30 UK 

Sep 11 14:30 UK 

Sep 11 17:00 US

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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FX Fortune Teller

Eur Jpy going up to 110.00 in about 5 weeks in my honest opinion.
i could be wrong, yes…..but the price WILL be hit

 

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