EUR/JPY Weekly Fundamental Analysis – May 9 -14, 2016 -Forecast

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Published: May 7, 2016, 05:43 UTC

The EUR/JPY saw low volumes this week with Japan closed for domestic holidays for most of the week. The pair ended at 122.16 seeing a drop of 0.25%. It

EUR/JPY Weekly Fundamental Analysis – May 9 -14, 2016 -Forecast

The EUR/JPY saw low volumes this week with Japan closed for domestic holidays for most of the week. The pair ended at 122.16 seeing a drop of 0.25%. It was just last week when inaction from the Bank of Japan sent global markets sharply lower, and the notable reaction underlines the relative fragility of investor sentiment. The upcoming Japanese market holiday all but guarantees that BoJ policy outlook will remain unchanged in the week ahead.

Investors widely expected the Bank of Japan would ease policy further. The subsequent disappointment arguably underlined market dependence on extremely low borrowing costs and other unconventional measures of monetary policy stimulus.

The euro strengthened to $1.1395 late Friday in New York, compared with $1.1404. The dollar weakened to Yen 107.12 late Friday in New York, from Yen 107.27 late Thursday.

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:

	Cur.	Event	Actual	Forecast	Previous
Sunday, May 8, 2016
	CNY	Trade Balance (USD) (Apr)		40.00B	29.86B
Tuesday, May 10, 2016
	CNY	CPI (YoY) (Apr)		2.4%	2.3%
Wednesday, May 11, 2016
	GBP	Manufacturing Production (MoM) (Mar)		0.3%	-1.1%
	USD	Crude Oil Inventories			2.784M
Thursday, May 12, 2016
	GBP	Interest Rate Decision (May)		0.50%	0.50%
Friday, May 13, 2016
	USD	Core Retail Sales (MoM) (Apr)		0.5%	0.1%
	USD	PPI (MoM) (Apr)		0.3%	-0.1%
	USD	Retail Sales (MoM) (Apr)		0.7%	-0.4%
Saturday, May 14, 2016
	CNY	Industrial Production (YoY) (Apr)		6.5%	6.8%