USD/JPY Fundamental Forecast – June 1, 2016

The USD/JPY dipped 3 points to trade at 111.09 with little direction in the morning session. The US dollar eased giving back some of Monday’s gains but weakness in the yen limited the action. Sharp differences of opinion surfaced ahead of last week’s G7 summit, with the U.S. Treasury warning Japan not to use this year’s strength in the yen as a pretext to intervene to weaken the currency and Tokyo insisting that its currency’s net gains — 9% since the end of January — have been excessive, raising the prospect of intervention.

Host prime minister Shinzo Abe, whose three-year-old reflationary program, dubbed “Abenomics”, is hanging by a thread, was the leader most under strain at the meeting, held in the Japanese region of Shima. Shinzo Abe intends to put off raising Japan’s consumption tax by two-and-a-half years until October 2019 with a decision set to be announced as early as Wednesday.

A stream of officials visited the prime minister’s residence on Monday and came out with the same message: “I felt that prime minister Abe is very determined to postpone it,” said Natsuo Yamaguchi, head of Komeito, Mr Abe’s coalition partners.

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.

Upcoming Economic Events that you should be monitoring:

Wednesday, June 1, 2016

Government Bond Auctions

Date Time       Country           Auction

May 30 11:10 Italy Eur 2-2.5bn 0.45% Jun 2021 BTP

Jun 01 10:30 Denmark Holds bond auction

Jun 01 11:30 Germany Eur 4bn 0% Apr 2021 Bobl

Jun 01 11:30 UK Gbp 2.75bn 1.5% 2021 Gilt

Jun 01 17:20 Sweden Announces details of bond auction on Jun 08

Jun 02 10:30 Spain Holds bond auction

Jun 02 10:50 France Eur 8-9bn 2.25% May 2024, 0.5% May 2026 & 3.25%

Jun 02 11:03 Sweden Sek 0.5bn 0.125% 2019 I/L & Sek 0.5bn 0.125% 2026 I/L bonds

Jun 06 13:00 Norway Details of bond auction on Jun 08

Jun 07 11:00 Netherlands Eur 4-6bn Jan 2022 DSL

Jun 07 11:00 Austria Holds bond auction

Jun 07 11:30 Germany Holds I/L bond auction

Jun 07 11:30 UK 4.5% 2046 Gilt

Jun 08 11:03 Sweden Holds bond auction

Jun 08 11:05 Norway Holds bond auction

Jun 08 11:30 Germany Eur 5bn Jun 2018 Schatz

Jun 08 17:20 Italy Announces details of bond auction

Jun 09 11:30 UK 0.125% 2036 I/L Gilt

Jun 09 17:20 Sweden Announces details of I/L auction on Jun 16