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EUR/JPY Fundamental Analysis December 19, 2012, Forecast

By:
Barry Norman
Updated: Aug 21, 2015, 01:00 UTC

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

EUR/JPY Fundamental Analysis December 19, 2012, Forecast

EUR/JPY Fundamental Analysis December 19, 2012, Forecast
EUR/JPY Fundamental Analysis December 19, 2012, Forecast
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 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

Building Permits 

0.875M

0.868M

 

13:30

USD

Housing Starts 

0.870M

0.894M

 

21:45

NZD

GDP (QoQ) 

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  

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