USD/JPY Fundamental Analysis – December 3, 2015 – Forecast

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Published: Dec 2, 2015, 05:30 UTC

Analysis and Recommendation: The USD/JPY added 20 points as the greenback rebounded after yesterday’s rout on comments from Fed member Evans who says he

USD/JPY Fundamental Analysis – December 3, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY added 20 points as the greenback rebounded after yesterday’s rout on comments from Fed member Evans who says he is rethinking a December rate increase. The pair is trading at 123.06. The US dollar edged back towards multi-month highs on Wednesday, taking back some ground lost when bulls got cold feet after data showed US manufacturing contracted in November for the first time in three years.

The dollar index inched up about 0.1 per cent to 99.894, after skidding below an 8-1/2-month high of 100.310 set on Monday — a high within a few ticks of its 12-year peak of 100.390 set in March.

Investors awaited the key non-farm payrolls report on Friday, which is expected to show that employers added 200,000 jobs in November, according to economists polled by Reuters. A solid report would cement expectations that the Fed is on track to increase interest rates this month.

Against the yen, the dollar inched up to 123.03 yen moving back toward Monday’s high of 123.34. It has been mired in consolidation mode against its Japanese peer since hitting a three-month high of 123.77 in mid-Novembers.

“Japanese importers have demand for dollars, so any good figure, then 124, here we come,’’ said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.

Tempering dollar sentiment, Chicago Fed President Charles Evans emphasised the need for the US central bank to spell out a gradual pace of rate hikes, and reminded investors not to forget the timing of future increases.

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.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	GDP (YoY) (Q3)	2.5%	2.4%	1.9%
AUD	GDP (QoQ) (Q3)	0.9%	0.8%	0.3%

Upcoming Economic Events that you should be monitoring:

Thursday, December 3, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Nov)		55.0	54.9
EUR	Deposit Facility Rate (Dec)		-0.30%	-0.20%
EUR	Interest Rate Decision (Dec)		0.05%	0.05%
EUR	ECB Press Conference
USD	Fed Chair Yellen Testifies
USD	ISM Non-Manufacturing PMI (Nov)		58.0	59.1