EUR/JPY Fundamental Analysis – August 20, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY added 3 points to trade at 137.24 after an uneven trade balance print in the morning.  The euro is trading in the green with little news or headlines to support moves.   apan’s trade deficit has narrowed a less-than-expected 72.3 per cent in July from a year ago, as the cost of energy imports kept falling, but the volume of exports stumbled, official data shows.

The finance ministry said Japan’s monthly deficit came in at Y268.05 billion ($A2.94 billion), well below Y966.5 billion a year earlier, although economists had predicted the shortfall would shrink to about Y53 billion.

The lackluster data come two days after separate figures showed that the world’s third-biggest economy contracted last quarter, boosting speculation the central bank will be forced to unleash more stimulus as Tokyo’s “Abenomics” growth blitz stumbles.

Imports fell 3.2 per cent last month as weak commodity prices helped bring down the country’s energy bill, which soared after it had to replace nuclear power with pricey fossil fuels after the Fukushima nuclear crisis.

While the value of Japan’s exports rose 7.6 per cent, partly driven by rising vehicle shipments, the volume of goods slipped 0.7 per cent from the same month last 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:

 

Upcoming Economic Events that you should be monitoring:

Thursday August 20, 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