USD/JPY Fundamental Analysis August 27, 2012, Forecast

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Analysis and Recommendation:

The USD/JPY is trading at 78.62 as the US was able to add a few pips in this morning’s session.  JPY is is little changed vs the USD, holding on to gains seen over the course of yesterday’s post-FOMC reaction.  Markets were quick to drive a 1.0% rally in JPY as they assessed the implications of the FOMC’s dovish rhetoric in relation to the outlook for BoJ policy.  While both central banks remain accommodative, and despite the fact that we expect JPY weakness as a result of a renewed expansion in yield spreads vs the US, the near term impact of monetary policy is likely to drive JPY strength in the absence of a renewal in interventionist and dovish rhetoric from the MoF and BOJ, respectively.

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 up to the data analysis and information in our weekly reports.

Economic Data August 24, 2012 actual v. forecast

Date

 

Currency

 

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Aug. 24

 

AUD

 

 

 

RBA Governor Stevens Speaks 

 

 

 

 

 

 

 

 

 

JPY

 

 

 

CSPI (YoY) 

-0.2%

 

-0.2% 

 

-0.4% 

   

 

 

AUD

 

 

 

CB Leading Index (MoM) 

0.2%

 

 

 

0.3% 

   

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD ( very light day )

Date

 

Currency

 

 

Previous

Mon

Aug 27

27th-28th

EUR

 

German Import Prices m/m

-1.5%

 

All Day

GBP

 

Bank Holiday

 
 

12:15pm

USD

 

FOMC Member Pianalto Speaks

 
 

Tentative

AUD

 

HIA New Home Sales m/m

2.8%

 

Government Bond Auctions

Date  Time  Country 

23/8  05:45  Japan 

23/8  11:30  UK 

23/8  19:00  US 

27/8  11:30  Germany 

28/8  10:30  Spain

28/8  11:00  Italy 

28/8  19:00  US 

29/8  11:00  Italy 

29/8  19:00  US 

30/8  05:35  Japan

30/8  11:00  Italy 

30/8  19:00  US

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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