Analysis and Recommendations: The EUR/JPY dipped 22 points to trade at 137.90 after more disappointing data out of Japan. Governor Kuroda said last month
The EUR/JPY dipped 22 points to trade at 137.90 after more disappointing data out of Japan. Governor Kuroda said last month he didn’t think Japan’s slowdown would continue from July, and earlier this month said recent weakness in industrial production and exports would be temporary.
Japan “need not worry” about China’s currency devaluation of the yuan because it can always offset the effects by easing monetary policy, said Koichi Hamada, an adviser to Abe.
Economists surveyed before Monday’s data didn’t foresee a strong bounce. Japan’s economy will grow 2 percent from July to September, according to the median estimate of economists.
Japan’s economy shrank at an annualized pace of 1.6 per cent in the April-June period, contracting for the first time in three quarters on weak exports and consumer spending, government data showed on Monday.
China’s economic slowdown and its impact on its Asian neighbors have also heightened the chance that any rebound in growth in July-September will be modest, analysts say. The gloomy data adds to signs that Japan’s economy is at a standstill and heightens pressure on policymakers to offer additional monetary or fiscal stimulus later this year.
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.
Today’s economic releases:
Cur. |
Imp. |
Event |
Actual |
Forecast |
Previous |
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JPY |
GDP (QoQ) (Q2) |
-0.4% |
-0.5% |
1.1% |
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JPY |
GDP (YoY) (Q2) |
-1.6% |
-1.9% |
4.5% |
Upcoming Economic Events that you should be monitoring:
Tuesday, August 18, 2015
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Actual |
Forecast |
Previous |
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AUD |
Monetary Policy Meeting Minutes |
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GBP |
CPI (YoY) (Jul) |
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USD |
Building Permits (Jul) |
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1.232M |
1.337M |
Government Bond Auctions
Date Time Country
Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz
Aug 19 11:03 Sweden Holds bond auction
Aug 20 10:30 Spain Auctions Bonos/Obligaciones
Aug 20 11:30 UK Auctions 4.25% 2036 Gilt
Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug