Analysis and Recommendations: The EUR/JPY is trading at 110.66 continuing to gain, as the euro remains fairly flat but the JPY weakens against its
The EUR/JPY is trading at 110.66 continuing to gain, as the euro remains fairly flat but the JPY weakens against its counterparts after the landslide win by the Liberal Democratic Party. The euro rose against the yen as well, but saw its gains on the U.S. dollar undermined by European Central Bank President Mario Draghi after he reiterated concerns over slow growth of Europe’s economy. The euro climbed 0.43 percent to 110.66 yen. The euro’s movement’s shows, it is coming off the highs after Draghi’s comments about growth. Still, it is in an upward trend channel. Year-to-date, the euro is up 1.66 percent against the greenback and 10.84 percent against the yen.
The prospect of ultra-loose monetary policy in Japan continues to weaken the yen further in coming weeks, depending on the pace of policy change. However, given that bets against the yen are already hefty, losses could be limited. The LDP’s massive victory will give the new government a greater chance to push through its policies and possibly appoint a more dovish central bank chief next year. The LDP and its ally the New Komeito party secured the two-thirds majority needed to overrule parliament’s upper house.
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
Economic Data December 18, 2012 actual v. forecast
Date |
|
Currency |
|
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
|
|
CNY |
|
|
China House Prices (MoM) |
-0.70% |
|
|
|
-1.10% |
|
|
|
|
CNY |
|
|
Chinese FDI |
-3.60% |
|
|
|
-3.45% |
|
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Dec. 19 |
13:30 |
USD |
0.875M |
0.868M |
|
|
13:30 |
USD |
0.870M |
0.894M |
|
|
21:45 |
NZD |
0.4% |
0.6% |
Government Bond Auction
Date Time Country
Dec 19 18:00 US
Dec 20 10:30 UK
Dec 20 16:30 Italy
Dec 20 18:00 US
Dec 21 16:30 Italy