USD/JPY Fundamental Forecast – February 8, 2016

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Published: Feb 5, 2016, 05:51 UTC

Analysis and Recommendation: The USD/JPY dipped 10 points to trade at 1.1668 as traders remained in risk off mode. The U.S. dollar changed little in the

USD/JPY Fundamental Forecast – February 8, 2016

Analysis and Recommendation:

The USD/JPY dipped 10 points to trade at 1.1668 as traders remained in risk off mode. The U.S. dollar changed little in the upper 116-yen level Friday morning in Tokyo, a tad higher from a two-week low hit overnight on the back of disappointing U.S. employment and manufacturing data.

Further lessening already diminishing bets on the Fed’s additional tightening plans, U.S. data showed Thursday initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 285,000 last week, while new orders for manufactured goods posted a larger-than-expected 2.9 percent fall in December.

“Rising concerns over the state of the U.S. economy has led to the view that the Fed may not be able to raise rates as the markets had previously thought,” said Shinichiro Kadota, foreign exchange strategist at Barclays Bank.

Market attention is now on U.S. nonfarm payrolls data for January, due out later in the day, for hints as to the pace of the Fed’s rate hikes, dealers said.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	Retail Sales (MoM) (Dec)		0.5%	0.4%
USD	Nonfarm Payrolls (Jan)		190K	292K
USD	Unemployment Rate (Jan)		5.0%	5.0%
CAD	Employment Change (Jan)		5.5K	22.8K
CAD	Ivey PMI (Jan)		50.0	49.9