EUR/JPY Fundamental Forecast – May 4, 2016

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Published: May 3, 2016, 03:41 UTC

The EUR/JPY dipped 29 points to 122.46 as the euro gave back some of its gains. The Japanese currency has risen further this week after the U.S. Treasury

EUR/JPY Fundamental Forecast – May 4, 2016

The EUR/JPY dipped 29 points to 122.46 as the euro gave back some of its gains. The Japanese currency has risen further this week after the U.S. Treasury on Friday put Japan on a new currency monitoring list with four other countries that have large trade surpluses with the United States. The Caixin China manufacturing purchasing managers’ index comes after the release of an official index at the weekend, while just under half of the economists surveyed predict the Reserve Bank of Australia will cut its already record-low benchmark rate Tuesday.

The euro fell 0.1 per cent to US$1.1526, retracing some of its 0.7 per cent advance in the previous session, when it touched the highest level since Aug. 26.

Japanese markets are closed from Tuesday through Thursday for public holidays.

European data on April 29 showed the economy expanded more than analysts predicted in the first quarter and unemployment declined in March to the lowest since 2011. Markit Economics said Monday that its monthly Purchasing Managers Index for the currency bloc expanded at a faster pace than initially estimated.

“The euro zone is looking in a better shape than it has been in,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. The Fed has not given a strong signal that rates will rise sooner rather than later, so investors are looking alternatives, “and the euro by default is making some modest gains,” he said.

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 4, 2016

Cur.	Event	Actual	Forecast	Previous
	Japan – Constitution Day
AUD	Building Approvals (MoM) (Mar)		-3.0%	3.1%
CNY	Caixin Manufacturing PMI (Apr)		49.9	49.7
AUD	Interest Rate Decision (May)		2.00%	2.00%
GBP	Manufacturing PMI (Apr)		51.2	51.0