EUR/JPY Fundamental Analysis – August 21, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY gained 36 points to trade at 138.02 as the Japanese yen weakened the euro rebounded. The euro continued to rally after euro area growth seemed to be stabilizing and the Greek situation becomes a memory.

Euro-area finance ministers signed off on a bailout program for Greece of as much as 86 billion euros paving the way for the nation to pay its bills and begin to rebuild its economy.

Greece is due to receive a first installment of funds from the European Stability Mechanism on Thursday, in time to pay the European Central Bank and clear its arrears with other creditors. Finance ministers approved the bailout deal on a Wednesday conference call.

“The Greek government is bound to implementing this wide-ranging reform package with determination and we will monitor the process closely,” said Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers. “It’s not going to be easy. We are certain to encounter problems in the coming years but I trust we will be able to tackle them.”

In another volatile day in Asia, Chinese shares were able to rebound from a sharp drop to end the session higher, Vietnam’s benchmark VN Index lost 0.4 percent after the central bank devalued its currency and Japan’s Nikkei index suffered its biggest fall in more than five weeks.

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:

Friday, August 21, 2015

Government Bond Auctions

Date Time Country

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