EUR/JPY Fundamental Analysis December 27, 2012 Forecast

Analysis and Recommendations:

The EUR/JPY is trading at 112.34 adding 37pts following the USD/JPY which also added 39pts today. Global markets outside of Japan are fairly quiet during the holiday break. This morning Shinzo Abe was officially named and installed as the new Prime Minister of Japan. Abe’s economic and financial policies have become the focus of global news. His attacks on the Bank of Japan have been aggressive and direct. This weekend he threated the bank saying that if they do support and comply to his fiscal programs that he would seek to change laws to take more control over the action of the central bank. This attack has upset global traders, where the independence of central banks have always remained outside of the political arena. Giving a politician control over the bank would cause the currency to lose its value as traders need this independence to rely on goals and plans on a long term basis and not on a short term political goal, especially with countries like Japan that has seen 6 government in just a few years.

The euro has weakened slightly after the holiday as traders remain is risk aversion mode as traders begin to serious question the ability of US lawmakers to reach a deal to avoid budget cuts and tax expirations.

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 26, 2012 actual v. forecast

Markets were closed on Christmas day and there were no economic releases or major data reports.

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Government Bond Auction

Date Time Country 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy