EUR/JPY Fundamental Forecast – May 25, 2016

By:

Published: May 24, 2016, 03:54 UTC

The EUR/JPY gained 6 points to trade at 122.63 as the euro continued to ease against the stronger yen. Germany has a report on investor confidence due,

EUR/JPY Fundamental Forecast – May 25, 2016

The EUR/JPY gained 6 points to trade at 122.63 as the euro continued to ease against the stronger yen. Germany has a report on investor confidence due, while France has a gauge of business sentiment coming. Euro-area finance ministers will meet to discuss how to conclude Greece’s bailout review, including debt-relief measures and contingency plans in case budget targets are missed. Hungary’s central bank is widely expected to cut interest rate.

The lack of ministerial consensus over which policy levers to pull comes as Prime Minister Shinzo Abe prepares his heavily indebted nation for what may be another dose of spending to help the struggling economy. Ideally, he’d like the blessing of his G-7 peers before doing so, but expectations are low that national leaders can go one step further on any economic accord when they meet in Mie Prefecture later this week.

Comments on the currency’s moves by Finance Minister Taro Aso in Sendai on Friday and Saturday hinted at growing frustration about the impact on exporters after the yen surged 9 percent this year versus the dollar, spurring speculation that the Finance Ministry may intervene. Aso raised the issue in a meeting with U.S. Treasury Secretary Jacob J. Lew. (Japan Times)

FxEmpire provides in-depth analysis for each asset 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 up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Upcoming Economic Events that you should be monitoring:

Wednesday, May 25, 2016

Cur.	Event	Actual	Forecast	Previous
USD	API Weekly Crude Oil Stock			-1.140M
NZD	Trade Balance (YoY) (Apr)		-3,940M	-3,380M
NZD	Trade Balance (MoM) (Apr)		60M	117M
AUD	Construction Work Done (QoQ) (Q1)		-1.5%	-3.6%
EUR	EU Finance Ministers Meeting
USD	Goods Trade Balance (Apr)		-60.10B	-56.90B
USD	FOMC Member Harker Speaks
USD	Services PMI (May)		53.1	52.8
CAD	Interest Rate Decision		0.50%	0.50%
USD	Crude Oil Inventories			1.310M
USD	FOMC Member Kashkari Speaks
USD	FOMC Member Kaplan Speaks