The EUR/JPY gained 60 points in the morning session with the US and UK on holiday and traders looking at a rate increase in the US. This week the ECB will
The EUR/JPY gained 60 points in the morning session with the US and UK on holiday and traders looking at a rate increase in the US. This week the ECB will meet on Thursday but no changes are expected. The yen fell after Prime Minister Abe announced a delay in the sales tax increase. While a delay in the sales tax hike could shield the floundering economy from a tax shock, it means less income for the cash-strapped government, possibly prompting credit rating agencies to downgrade Japan’s sovereign rating.
“A potential credit downgrade will also hurt the yen, so the recent developments would be negative for the yen overall,” Yamamoto said.
Japan is also seen compiling a supplementary budget to boost the sputtering economy, a move which is widely expected to be followed by further monetary easing by the Bank of Japan.
Japan’s government will probably hold off raising the tax because it needs to give priority to economic growth, Abe aide Hakubun Shimomura said on Fuji television on Sunday. Data on Monday showed retail sales growth stalled in April from the previous month, backing the case for a delay.
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:
Tuesday, May 31, 2016
Cur. | Event | Actual | Forecast | Previous | |||
NZD | ANZ Business Confidence (May) | 6.2 | |||||
AUD | Building Approvals (MoM) (Apr) | -3.0% | 3.7% | ||||
AUD | Current Account (Q1) | -19.5B | -21.1B | ||||
AUD | Private Sector Credit (MoM) (Apr) | 0.5% | 0.4% | ||||
EUR | CPI (YoY) (May) | -0.1% | -0.2% | ||||
EUR | Unemployment Rate (Apr) | 10.2% | 10.2% | ||||
USD | Core PCE Price Index (MoM) (Apr) | 0.2% | 0.1% | ||||
USD | Core PCE Price Index (YoY) (Apr) | 1.6% | |||||
USD | Personal Spending (MoM) (Apr) | 0.6% | 0.1% | ||||
CAD | GDP (MoM) (Mar) | -0.1% | -0.1% | ||||
CAD | GDP (QoQ) (Q1) | 0.2% | |||||
CAD | GDP Annualized (QoQ) (Q1) | 2.9% | 0.8% | ||||
USD | S&P/CS HPI Composite – 20 n.s.a. (YoY) | 5.1% | 5.4% | ||||
USD | Chicago PMI (May) | 50.6 | 50.4 | ||||
USD | CB Consumer Confidence (May) | 96.0 | 94.2 |
Government Bond Auctions
Date Time Country Auction
May 30 11:10 Italy Holds bond auction
Jun 01 10:30 Denmark Holds bond auction
Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl
Jun 01 11:30 UK 1.5% 2021 Gilt
Jun 01 17:20 Sweden Announces details of bond auction on Jun 08
Jun 02 10:30 Spain Holds bond auction
Jun 02 11:03 Sweden Holds I/L bond auction
Jun 02 11:50 France Holds bond auction