EUR/JPY Fundamental Analysis – August 19, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY gained 5 points in the Asian session  as the Japanese yen remained weak after disappointing GDP data on Monday weighed on the currency. The EURJPY is trading at 137.85.  apan’s economy contracted last quarter as consumers and businesses cut spending and exports tumbled, putting pressure on the prime minister to return his focus to Abenomics.

Gross domestic product fell an annualized 1.6 percent from January-March, ending two quarters of growth, the Cabinet Office said on Monday. The median estimate in a Bloomberg survey was for a 1.8 percent drop.

Economy Minister Akira Amari said he doesn’t expect to add fiscal stimulus and Bank of Japan chief Haruhiko Kuroda is counting on weakness to fade this quarter as he chases a distant 2 percent inflation target with unprecedented monetary stimulus.

After delivering a much-anticipated statement on Japan’s war legacy and engaging in a bruising legislative fight over defense laws, Prime Minister Shinzo Abe got a reminder on why he needs to return his focus to the economy.

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, August 19, 2015

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