Analysis and Recommendations: The EUR/JPY gained 49 points as the euro remained strong as market tensions eased allowing the selloff of the safe haven
The EUR/JPY gained 49 points as the euro remained strong as market tensions eased allowing the selloff of the safe haven yen. The pair is holding at 137.39. The yen declined 0.2 percent to 119.07 per dollar as of 11:51 a.m. in Tokyo, and fell 0.3 percent to 137.27 per euro. Japan’s currency is the best-performing major currency against the dollar since Aug. 11 when China shocked the markets by devaluing the yuan, gaining 5.1 percent.
The idea that the euro could be a haven in times of turmoil seemed preposterous just a few weeks ago. Yet that’s exactly what it’s become as the world gets rocked by everything from devaluations to bear markets in stocks. The euro has surged almost 4% against a basket of developed nation peers in the past month, the biggest gain in the group. It’s up against more of the world’s major currencies than the dollar, yen, Swiss franc or pound. And it’s climbing even as the European Central Bank expands the supply of euros. The weak US dollar is helping to support the climb of the euro this week.
China’s shock devaluation this month sparked a rout in emerging markets that’s prompted investors to unwind carry trades funded in euros. These deals involved borrowing at the ECB’s nearzero interest rates to fund higher-yielding purchases, and cancelling them means buying euros back.
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. |
Event |
Actual |
Forecast |
Previous |
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USD |
API Weekly Crude Oil Stock |
-7.300M |
1.900M |
-2.300M |
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NZD |
Trade Balance (MoM) (Jul) |
-649M |
-750M |
-194M |
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NZD |
Trade Balance (YoY) (Jul) |
-2,690M |
-2,660M |
-2,850M |
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AUD |
Construction Work Done (QoQ) (Q2) |
1.6% |
-1.5% |
-0.8% |
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AUD |
RBA Governor Stevens Speaks |
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Upcoming Economic Events that you should be monitoring:
Thursday, August 27, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
AUD |
Private New Capital Expenditure |
|
-2.5% |
-4.4% |
|
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GBP |
Nationwide HPI (YoY) (Aug) |
|
3.1% |
3.5% |
|
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GBP |
Nationwide HPI (MoM) (Aug) |
|
0.4% |
0.4% |
|
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EUR |
Spanish GDP (QoQ) (Q2) |
|
1.0% |
1.0% |
|
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RUB |
Central Bank reserves (USD) |
|
|
362.9B |
|
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USD |
GDP (QoQ) (Q2) |
|
3.2% |
2.3% |
|
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USD |
GDP Price Index (QoQ) (Q2) |
|
2.0% |
2.0% |
|
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USD |
Initial Jobless Claims |
|
274K |
277K |
|
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USD |
Pending Home Sales (MoM) (Jul) |
|
1.0% |
-1.8% |
Government Bond Auctions
Date Time Country
Aug 25 00:00 UK Announces details of Jan 2021 gilt
Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug
Aug 25 19:00 US Holds 2-year note auction
Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ
Aug 26 19:00 US Holds 2-year FRN note auction
Aug 26 12:05 Norway Holds bond auction
Aug 26 19:00 US Holds 5-year note auction
Aug 26 19:00 US Holds 2-year FRN auction
Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds
Aug 27 19:00 US Holds 7-year note auction
Aug 28 11:10 Italy Auctions BTPs/CCTeus
Sep 01 11:15 Austria Holds RAGB bond sale
Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt
Sep 02 11:03 Sweden Holds bond auction
Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl
Sep 02 11:30 UK Auctions new Jan 2021 Gilt
Sep 03 10:30 Spain Auctions Bonos/Obligaciones
Sep 03 11:10 France Auctions OATs
Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep
Sep 03 00:00 US Announces details of 10-year note on 09 Sep