EUR/JPY Fundamental Analysis – August 24, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY is flat in the morning session as traders focus on another drop in Chinese manufacturing. The pair is trading at 138.71 as the euro continues to recover. The euro gained in the morning session as the greenback declined putting pressure on the pair. The preliminary reading for a key Chinese purchasing managers’ index (PMI) fell to a near six-and-a-half-year low of 47.1 in August, below a Reuters forecast of 47.7, underscoring persistent sluggishness in country’s vast factory sector.

The euro stood at $1.1235, little changed in early trade but near a seven-week high of $1.1245 touched on Thursday, when it had risen 1.1 per cent in its biggest gain since July 10.

Traders are now quickly pricing out a September hike after minutes from the last Fed policy meeting provided no definitive indication.

Asian stocks fell early on Friday, following Wall Street, as fears took hold of a China-led deceleration in global growth. The dollar continued retreating on shrinking expectations of an US interest rate hike in September.

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Monday, August 24, 2015