EUR/JPY Fundamental Analysis – August 11, 2015 – Forecast

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Published: Aug 10, 2015, 04:37 UTC

Analysis and Recommendations: The EUR/JPY added 14 points as the Japanese yen eased on worrisome data from China and Japan where the current account

EUR/JPY Fundamental Analysis – August 11, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY added 14 points as the Japanese yen eased on worrisome data from China and Japan where the current account missed expectations. The euro is trading on a negative bias after limited data on Friday showed that Germany’s industrial production logged its biggest fall in ten months and exports dropped for the first time in five months in June, signaling weak growth for the second quarter.

Industrial production dropped unexpectedly by 1.4 percent month-on-month in June, which was the biggest fall since August, when it declined 2.8 percent, provisional data from Destatis revealed Friday.

This morning Japan posted 12 straight monthly balance of payments gains in June, taking the half-year surplus to its highest in five years as overseas income and tourism receipts prospered.

June’s current account surplus was 558.6 billion yen Ministry of Finance data showed on Monday, compared with a median forecast for a 773.6 billion yen.

The gain was driven by a rising primary income surplus, which measures profits from investment abroad, and a gain in the travel account due primarily to growth in tourist numbers on the back of the weak yen.

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.

This weekend and today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
CNY	Exports (YoY) (Jul)	-8.3%	-1.0%	2.8%
CNY	Imports (YoY) (Jul)	-8.1%	-8.0%	-6.1%
CNY	Trade Balance (Jul)	43.03B	53.25B	46.54B
CNY	CPI (MoM) (Jul)	0.3%	0.3%	0.0%
CNY	CPI (YoY) (Jul)	1.6%	1.5%	1.4%
CNY	PPI (YoY) (Jul)	-5.4%	-5.0%	-4.8%
JPY	Adjusted Current Account	1.30T	1.41T	1.64T
JPY	Current Account n.s.a. (Jun)	0.559T	0.774T	1.881T
JPY	BoJ Monthly Report

Upcoming Economic Events that you should be monitoring:

Tuesday, August 11, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	NAB Business Confidence (Jul)			10
EUR	German ZEW Current Conditions		64.4	63.9
EUR	German ZEW Economic Sentiment		32.0	29.7
CAD	Housing Starts (Jul)		195.0K	202.8K
USD	Nonfarm Productivity (QoQ) (Q2)		1.6%	-3.1%
USD	Unit Labor Costs (QoQ) (Q2)		0.2%	6.7%
USD	API Weekly Crude Oil Stock			-2.400M