EUR/JPY Weekly Fundamental Analysis – April 18-22, 2016 -Forecast

The EUR/JPY ended the week at 122.75 with a loss of 0.36% as the euro gained and the yen eased as safe haven trading eased. Bloomberg Markets reported that the Bank of Japan’s policy is not affected by the international community’s pledges to avoid targeting exchange rates, Japanese Finance Minister Taro Aso said, adding that he told U.S. Treasury Secretary Jack Lew of his “strong concern” about recent moves in the yen. Finance chiefs from the Group of 20 economies agreed Thursday that excessive moves in exchange rates are undesirable, according to Finance Minister Taro Aso, who added that the global economy still faces downside risks.

“The G-20 has promised to avoid competitive devaluations, but this doesn’t apply to negative interest rates and other steps done for domestic policy purposes,” Aso said he told his counterparts at a Group of 20 meeting in Washington. Aso also said he and Lew agreed that excessive currency moves are undesirable.

The comments come as the Bank of Japan’s policy is under scrutiny both at home and abroad. The BOJ’s negative-rate policy was identified as a source of concern for some international officials at the G-20’s last meeting in Shanghai.

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.

Major Economic Events for the week:

Government Bond Auctions

Date Time       Country           Auction

Apr 18 11:00 Belgium Holds OLO auction

Apr 18 13:00 Norway Details of bond auction on Apr 20

Apr 20 11:05 Norway Holds bond auction

Apr 20 11:30 Germany Eur 4bn 0.5% Feb 2026 Bund

Apr 20 17:20 Italy Details of BTP€i auction

Apr 20 17:20 Sweden Details of bond auction on Apr 27

Apr 21 10:30 Spain Holds bond auction

Apr 21 11:03 Sweden Holds I/L bond auction

Apr 21 11:50 France Holds bond auction

Apr 21 19:00 US Holds 5-year TIPS auction

Apr 22 17:20 Italy Announces details bond auction