EUR/JPY Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

By:

Published: Feb 6, 2016, 06:11 UTC

Weekly Analysis and Recommendations: The EUR/JPY dipped 0.64% as the euro gained steadily on comments from the ECB while the yen gained on safe haven

EUR/JPY Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

Weekly Analysis and Recommendations:

The EUR/JPY dipped 0.64% as the euro gained steadily on comments from the ECB while the yen gained on safe haven trades. The pair ended 130.34. The European Central Bank will not surrender to low inflation, Mario Draghi vowed, reinforcing his case for ECB action next month to counter deteriorating global conditions. The ECB president made his remarks in the regional offices of Germany’s Bundesbank, which has fiercely opposed Mr Draghi’s desire to expand a bond buying program as a way to ease monetary policy.

The ECB’s inflation target is below but close to 2 per cent. But inflation is now 0.4 per cent and has been below 1 per cent for more than two years. Inflation is set to fall further in the months ahead as a result of the oil price slump.

Mr Draghi said Japan’s experience illustrated how global monetary policymakers could lift inflation if they were fully committed to doing so.

“As long as the commitment of the Bank of Japan to a low positive inflation number was not clear, actual inflation and inflation expectations stayed in deflationary zone,” he said. “Since the Bank of Japan has signaled its commitment to reach 2 per cent inflation, however, core inflation has risen from less than -0.5 per cent in 2012 to close to 1 per cent today.”

FxEmpire provides in-depth analysis for each currency and commodity 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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


Date	Currency		Forecast
Feb 7	JPY	Current Account	1.59T
Feb 8	CAD	Building Permits m/m
	USD	Mortgage Delinquencies
Feb 9	AUD	NAB Business Confidence
	GBP	Trade Balance	-10.4B
	USD	JOLTS Job Openings	5.54M
	AUD	Westpac Consumer Sentiment
Feb 10	GBP	Manufacturing Production m/m	0.0%
Feb 11	CAD	NHPI m/m	0.3%
	USD	Unemployment Claims	287K
Feb 12	AUD	Home Loans m/m	2.9%
	EUR	German Prelim GDP q/q	0.3%
	EUR	Flash GDP q/q	0.3%
	USD	Core Retail Sales m/m	0.0%
	USD	Retail Sales m/m	0.1%
	USD	Import Prices m/m	-1.4%
	USD	UoM Consumer Sentiment	92.6
Feb 13