USD/JPY Fundamental Analysis August 6, 2012, Forecast

Posted August 03, 2012 5:07 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendation:

The USD/JPY is trading at 78.20. Yesterday the pair started to show some movement, with the US gaining a bit of momentum after the Fed’s withheld stimulus but after the ECB disappointed investors and markets turned, the USD remained strong as traders sentiment changed. Risk aversion returned in full swing with the yen the major benefactor.

The pair was holding close to the 78.50 price, with the USD gaining momentum, until things flipped around, as the US remained strong market movement changed.

Movement in JPY has remained relatively range bound over the past ten sessions, with a reluctance to move away from 78.20. Politicians appear to be split on recent proposals for the BoJ to embark on purchases of foreign bonds. Talk of such action has been brought up by a former BoJ Governor as well as a newly added BoJ Governing board member, in the hopes of driving yen weakness

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.

Economic Data August 2, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Aug. 03

AUD

AIG Services Index

46.5

48.8

CNY

Chinese Non-Manufacturing PMI

55.60

56.70

CNY

Chinese HSBC Services PMI

53.10

52.30

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date	Time	Currency	Event	Forecast	Previous
Aug 6	1:30	AUD	ANZ Job Advertisements m/m		-1.2%
	22:45	NZD	Labor Cost Index q/q		0.5%
Aug 7	4:30	AUD	Cash Rate	3.50%	3.50%
	4:30	AUD	RBA Rate Statement
	23:50	JPY	Current Account		0.28T
Aug 8	1:30	AUD	Home Loans m/m		-1.2%
	12:30	USD	Prelim Nonfarm Productivity q/q		-0.9%
	12:30	USD	Prelim Unit Labor Costs q/q		1.3%
	14:30	USD	Crude Oil Inventories
	22:45	NZD	Employment Change q/q		0.4%
	22:45	NZD	Unemployment Rate		6.7%
	23:50	JPY	Core Machinery Orders m/m		-14.8%
Aug 9	1:30	AUD	Employment Change		-27.0K
	1:30	AUD	Unemployment Rate		5.2%
	12:30	USD	Trade Balance		-48.7B
	12:30	USD	Unemployment Claims
Aug 10	1:30	AUD	RBA Monetary Policy Statement
	12:30	USD	Import Prices m/m		-2.7%
	18:00	USD	Federal Budget Balance		-59.7B

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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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