EUR/JPY Weekly Fundamental Analysis- November 30 – December 4, 2015 – Forecast

Weekly Analysis and Recommendations:

The EUR/JPY ended the week a bit lower as the euro continued to fall ahead of the ECB meeting this week. The euro is expected to continue on its decline as Mario Draghi on Thursday will introduce additional stimulus to help the Eurozone economy.

The Japanese economy slid into recession in Q3, demonstrating that the Abe cabinet is too slow to react to global challenges, while the promised ‘Abenomics 2.0’ is lagging.

This week Japan will release its economic data on Monday and Tuesday with an address from the BoJ on Tuesday morning. A drop in Japanese inventories contributed to a 0.5% decline in the broader economy. Albeit a positive signal to the commodities markets (the Japanese companies have exhausted larger portions of national oil and raw material stockpiles), an inventory decline is an alarming signal to the Japanese economy: the companies are losing confidence in their commercial performance and sales volumes as overseas risks linger.

Personal consumption was a bright spot for the Japanese economy, adding 0.3% to the GDP. Amidst the persistent disinflation and low commodity prices, Japanese households can afford more goods and services. The services sector is thus poised to expand while the industrial production might wither away as the Chinese slowdown and global headwinds are forcing Japanese manufacturers to decrease spending and output.

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:

Upcoming Government Bond Auctions

Date Time Country 

Dec 01 11:30 UK 1.5% 2021 Gilt auction

Dec 02 16:30 Sweden Announces details of Bond on 11 Dec

Dec 03 10:30 Spain Auctions

Dec 03 10:50 France Auctions OATs

Dec 03 11:03 Sweden Holds I/L bond auction

Dec 04 11:03 Sweden Holds I/L bond auction