EUR/JPY Fundamental Forecast – May 6, 2016

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Published: May 5, 2016, 04:16 UTC

The EUR/JPY added 6 points to 123.00 with Japanese traders on holiday. The euro’s weakness took the Dollar index a measure of the buck’s strength against

EUR/JPY Fundamental Forecast – May 6, 2016

The EUR/JPY added 6 points to 123.00 with Japanese traders on holiday. The euro’s weakness took the Dollar index a measure of the buck’s strength against a basket of six rival currencies, to its lowest level since August. The index was recently down 0.5% at 92.6000. The pair weakened sharply last week after the Bank of Japan left its monetary stimulus efforts virtually unchanged, surprising investors who had expected more, and spurring talk that the central bank had hit a wall in its efforts to jump-start inflation and growth in the world’s third-largest economy.

The shared currency extended its gains after a reading on U.S. manufacturing sector activity in April came in weaker than expected, suggesting that a rebound in March wasn’t sustained. It also found some support earlier after a reading on Eurozone manufacturing sector activity in April was revised higher.

The yen’s rise, which began in earnest after the central bank introduced a negative interest rate policy in late January, leaves yet another unwanted dent in Prime Minister Shinzo Abe’s efforts to stimulate growth and boost markets.

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.

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Friday, May 6, 2016

Cur.	Event	Actual	Forecast	Previous
USD	FOMC Member Bullard Speaks
USD	FOMC Member Kaplan Speaks
USD	FOMC Member Lockhart Speaks
USD	FOMC Member Williams Speaks
AUD	RBA Monetary Policy Statement
USD	Average Hourly Earnings (MoM) (Apr)		0.3%	0.3%
USD	Nonfarm Payrolls (Apr)		202K	215K
USD	Participation Rate (Apr)			63.0%
USD	Private Nonfarm Payrolls (Apr)		193K	195K
USD	Unemployment Rate (Apr)		5.0%	5.0%
USD	Baker Hughes U.S. Rig Count			332