The USD/JPY bounced around all week only to end at 102.72 up by 0.23% as the greenback soared late on Friday on comments from several Federal Reserve
The USD/JPY bounced around all week only to end at 102.72 up by 0.23% as the greenback soared late on Friday on comments from several Federal Reserve members supporting a rate increase. Japanese economic data for the week was disappointing as traders prepare for next week’s Bank of Japan meeting. Moving into the new week the pair is a strong sell as it will most likely move back to the 101 price level. On Monday of next week, several Fed officials are expected to speak, and Thursday will see the release of several key economic indicators including the weekly jobless claims, the producer price index, retail sales, and industrial production reports. The consumer price index will also be released on Friday.
Although these figures are likely to be altered following the Monday speeches, current expectations are that the Fed may raise rates from 0.50 to 0.75 during the December FOMC meeting.
According to the CME Group’s Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 24 percent at the September 2016 meeting, 27 percent at the November 2016 meeting, and 58 percent at the December meeting.
Traders said the market had not reacted much to China’s better-than-expected trade data on Thursday or foreign exchange figures on Wednesday. China’s imports unexpectedly rose in August for the first time in nearly two years while exports fell at a more modest pace. Foreign exchange reserves fell by a “modest” US$15.89 billion to US$3.185 trillion in August.
Traders believe the central bank has stepped in via state-run banks since mid-July to slow the pace of depreciation in the yuan, which has weakened 2.6 per cent against the US dollar so far this year.
FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.
This Week’s Economic Events That You Should Be Monitoring:
Date | Country | Name | Volatility | Previous | Consensus |
9/13/2016 | GBP | Core Consumer Price Index | 3 | 1.3 | 1.4 |
9/13/2016 | GBP | Consumer Price Index (YoY) | 3 | 0.6 | 0.7 |
9/13/2016 | EUR | ECB President Draghi’s Speech | 3 | ||
9/13/2016 | EUR | ZEW Survey – Economic | 3 | 4.6 | 6.7 |
9/14/2016 | NZD | Gross Domestic Product (YoY) | 3 | 2.8 | |
9/15/2016 | AUD | Employment Change | 3 | 26.2 | 15 |
9/15/2016 | AUD | Unemployment Rate | 3 | 5.7 | 5.7 |
9/15/2016 | CHF | SNB Interest Rate Decision | 3 | -0.75 | -0.75 |
9/15/2016 | CHF | SNB press conference | 3 | ||
9/15/2016 | GBP | BoE Asset Purchase Facility | 3 | 435 | 435 |
9/15/2016 | GBP | BoE Interest Rate Decision | 3 | 0.25 | 0.25 |
9/15/2016 | GBP | Monetary Policy Summary | 3 | ||
9/15/2016 | GBP | BOE MPC Vote Cut | 3 | 9 | 0 |
9/15/2016 | GBP | BOE MPC Vote Unchanged | 3 | 0 | 9 |
9/15/2016 | GBP | BOE MPC Vote Hike | 3 | 0 | 0 |
9/15/2016 | GBP | Bank of England Minutes | 3 | ||
9/15/2016 | USD | Retail Sales (MoM) | 3 | 0 | 0 |
9/16/2016 | USD | Consumer Price Index (YoY) | 3 | 0.8 | 1 |
9/16/2016 | USD | Consumer Price Index ECORE | 3 | 2.2 | 2.2 |
9/16/2016 | USD | Michigan Consumer Sentiment | 3 | 89.8 | 91 |
Government Bond Auctions
Date Time Country Auction
Sep 12 11:30 Germany Eur 2bn Mar 2017 Bubill
Sep 12 13:00 Norway Details of bond auction on Sep 14
Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL
Sep 13 11:10 Italy Holds bond auction
Sep 14 11:05 Norway Holds bond auction
Sep 14 11:30 UK 0.125% 2046 I/L Gilt
Sep 14 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
Sep 15 10:30 Spain Holds bond auction
Sep 15 11:03 Sweden Holds I/L bond auction
Sep 15 11:50 France Holds bond auction