USD/JPY Fundamental Forecast – August 30. 2016

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Updated: Aug 29, 2016, 04:37 UTC

The USD/JPY gained 29 points as the US dollar soared on rate hike indications. The Japanese currency is trading at 102.09 easing the pressure on exporters

USD/JPY Fundamental Forecast – August 30. 2016

The USD/JPY gained 29 points as the US dollar soared on rate hike indications. The Japanese currency is trading at 102.09 easing the pressure on exporters but traders are closely monitoring for any change in the economic situation based on the government’s efforts. Between monetary stimulus and negative interest rates from the Bank of Japan and the massive fiscal stimulus plan announced recently by the Finance Ministry.

Bank of Japan governor Haruhiko Kuroda reiterated a pledge to boost monetary stimulus if needed. The currency fell 0.3 percent, after sliding 1.3 percent on Friday, and the euro held near a two-week low. The Japanese currency added losses for a fourth day after Bank of Japan Governor Haruhiko Kuroda reiterated his readiness to ease policy further. Futures indicated a 42 percent chance that the Fed will raise rates as early as next month, up from 22 percent a week earlier, with Fed watchers turning their attention to payrolls data later this week.

The greenback gained 1.3% against the yen on Friday to a two-week high, its biggest one-day advance in almost seven weeks. It extended those gains by 0.2% this morning.

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Upcoming Economic Events that you should be monitoring:

August 30, 2016

Country	Event	Volatility	Previous
NZD	Building Permits s.a	2	16.3
JPY	Unemployment Rate	2	3.1
JPY	Jobs/applicants ratio	2	1.37
JPY	Overall Household Spending	2	-2.2
JPY	Large Retailer’s Sales	2	-1.5
JPY	Retail Trade s.a	2	0.2
JPY	Retail Trade	2	-1.4
CHF	KOF Leading Indicator	2	102.7
GBP	Consumer Credit	2	1.837
GBP	Mortgage Approvals	2	64.766
EUR	Harmonized Index of Consumer Prices	2	0.4
EUR	Consumer Price Index	2	0.3
EUR	Harmonized Index of Consumer Prices	2	0.4
EUR	Consumer Price Index	2	0.4
CAD	Current Account	2	-16.8
USD	S&P/Case-Shiller Home Price Indices	2	5.2
USD	Consumer Confidence	2	97.3