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USD/JPY Fundamental Forecast – May 23, 2016

By:
Barry Norman
Published: May 20, 2016, 04:16 UTC

The USD/JPY is up 3 points as the pair slowly heads above the 110 level. The yen is trading at 1.0999 in the morning session.  Japan is facing increasing

USD/JPY Fundamental Forecast – May 23, 2016

The USD/JPY is up 3 points as the pair slowly heads above the 110 level. The yen is trading at 1.0999 in the morning session.  Japan is facing increasing pressure to avoid weakening the yen with Washington warning that currency intervention will not help boost global growth. G-7 finance ministers and central bankers meet in Japan today.

Tokyo stocks inched up Friday morning as a pause in the yen’s recent strength lifted sentiment, but remained top-heavy ahead of the Group of Seven finance chiefs’ two-day meeting kicking off later in the day.

“Investors are sitting on the sidelines as they wait for the G-7 meeting to begin,” Katsu said, adding that investors were closely watching whether the ministers will discuss volatility in the U.S. dollar-yen pair. “There is caution in the market that the yen could resume its rise depending on what kind of talks on intervention will take place between the United States and Japan, which is keeping the dollar-yen pair and shares directionless for now,” he said.

Finance Minister Taro Aso repeatedly warned last week that the government could intervene in the foreign-exchange market given the yen’s recent resurgence. But U.S. officials have disagreed, saying that the currency market has been orderly.

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.

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Upcoming Economic Events that you should be monitoring:

Monday, May 23, 2016

Cur. Event Actual Forecast Previous  
  Canada – Victoria Day
  JPY Exports (YoY) (Apr)     -6.8%  
  JPY Trade Balance (Apr)     755B  
  EUR Manufacturing PMI (May)   51.9 51.7  
  EUR Markit Composite PMI (May)   53.2 53.0  
  EUR Services PMI (May)   53.2 53.1

Government Bond Auctions

Date Time       Country           Auction

May 23 N/A UK Syndicated tap of 0.125% I/L 2046 Gilt

May 23 11:03 Sweden Sek 1.25bn 0.125% Jun 2019 I/L bond

May 23 11:30 Germany Eur 1.5bn May 2017 Bubill

May 23 12:00 Norway Details of bond auction on May 25

May 23 17:20 Italy Details of Zero‐coupon/BTP€i auction

May 25 11:03 Sweden Holds bond auction

May 25 11:05 Norway Holds bond auction

May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund

May 26 11:10 Italy Announces details of bond auction

May 26 11:10 Italy Holds Zero‐coupon/BTP€i auction

May 26 17:20 Sweden Details of I/L auction on Jun 02

 

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