USD/JPY Fundamental Forecast – August 31. 2016

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Published: Aug 30, 2016, 04:47 UTC

The USD/JPY climbed 15 points as the greenback continued to rally on hopes of action by the FOMC possibly as early as its September meeting. A continued

USD/JPY Fundamental Forecast – August 31. 2016

The USD/JPY climbed 15 points as the greenback continued to rally on hopes of action by the FOMC possibly as early as its September meeting. A continued flow of positive US data has helped increases the chances of a rate increase. The big data release will be Friday’s nonfarm payroll report.

In Japan this morning economic releases showed an increase in household spending as well as a rise in retail sales allowing the yen a little leeway. The pair is trading at 102.07 but in actuality the moves in the yen have matched the climb in the US dollar. But with the economy barely growing and inflation sliding further away from the Bank of Japan’s 2 percent target, most economists polled by Reuters expect the bank to ease further next month when it conducts a comprehensive review of the effects of its stimulus program.

Traders remain unsure when U.S. policy might change after Fed Chair Janet Yellen on Friday said the case for a rate increase was strengthening, but provided little detail on when it would next move. Vice Chair Stanley Fischer suggested a hike was possible as soon as September. Fischer is set to appear again later today.

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August 31, 2016

Country	Event	Volatility	Previous
GBP	Gfk Consumer Confidence	2	-12
JPY	Industrial Production	2	-1.5
JPY	Industrial Production	2	2.3
AUD	HIA New Home Sales	2	8.2
CHF	UBS Consumption Indicator	2	1.34
EUR	Unemployment Rate s.a.	3	6.1
EUR	Unemployment Change	3	-7
EUR	Unemployment	2	11.6
EUR	Unemployment Rate	2	10.1
EUR	Consumer Price Index	3	0.2
EUR	Consumer Price Index – Core	3	0.9
USD	ADP Employment Change	2	179
CAD	Gross Domestic Product Annualized	2	2.4
CAD	Gross Domestic Product	2	-0.6
USD	Chicago Purchasing Managers’ Index	2	55.8
USD	Pending Home Sales	2	1
USD	Pending Home Sales	2	0.2