USD/JPY Fundamental Forecast – May 4, 2016

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Published: May 3, 2016, 03:37 UTC

The USD/JPY dipped 26 points again this morning with Japan out on holiday. The US dollar continued to fall as the Fed signaled it would only peruse one

USD/JPY Fundamental Forecast – May 4, 2016

The USD/JPY dipped 26 points again this morning with Japan out on holiday. The US dollar continued to fall as the Fed signaled it would only peruse one increase this year. The US dollar index, which measures the greenback against a basket of currencies, slumped to its lowest level since January 2015 after a report showed US factory activity expanded at a more moderate pace in April as new orders and production slowed amid a continued draw-down in inventories. The Institute for Supply Management index of national factory activity slipped to 50.8 last month from 51.8 in March and below economist expectations of 51.4. A reading above 50 separates expansion from contraction in the manufacturing sector, which accounts for 12 percent of the US economy. (Scoop)

The dollar set a new 18-month low versus the yen as the yen pushed higher in a holiday-thinned market, while the Australian dollar held firm ahead of an interest rate decision from Australia’s central bank.

A Singapore-based trader said there appeared to some speculative yen buying in thin conditions with Japanese markets closed from Tuesday to Thursday for public holidays.

The yen added to its recent gains, having jumped about 5 percent against the dollar last week as the Bank of Japan held off from expanding its monetary stimulus – the yen’s biggest weekly gain since 2008.

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, May 4, 2016

Cur.	Event	Actual	Forecast	Previous
	Japan – Constitution Day
AUD	Building Approvals (MoM) (Mar)		-3.0%	3.1%
CNY	Caixin Manufacturing PMI (Apr)		49.9	49.7
AUD	Interest Rate Decision (May)		2.00%	2.00%
GBP	Manufacturing PMI (Apr)		51.2	51.0