EUR/JPY Fundamental Analysis January 22, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY fell 95 points as the yen strengthened after the BoJ kept policy and rates on hold. Markets are now waiting for the banks statement following the decision. The yen bounced back gaining steadily after the decision to trade at 136.34. The ECB is expected to announce on Thursday a programme of quantitative easing (QE) – purchasing government bonds with new money in the hopes of jolting Europe’s economy into life.

The battle weary euro has fallen fast and furiously in recent months—and may have to brace for another drubbing if the European Central Bank (ECB) delivers “shock and awe” monetary stimulus this week.

Analysts expect the ECB to unveil a sovereign bond-buying program worth in the region of 500-600 billion euros ($579-695 billion) to fight deflation and lackluster growth in the euro area. Such a number is already priced into markets and is expected to give the single currency some relief.

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 actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, January 22^nd

 

Government Bond Auctions

Date Time        Country             Auction

Jan 21               Norway             Holds bond auction

Jan 21               Germany           Eur 5bn Apr 2020 Bobl

Jan 21               Sweden             Details bond auction on 28 Jan

Jan 22               France               Eur 7.5-8.5bn 1.75% Feb 2017 BTAN     

Jan 22               Sweden             Sek 0.5bn 0.25% Jun 2022,

Jan 22               France               Eur 1-1.5bn 0.25% Jul 2018 & 0.25% Jul 2024 OATei

Jan 22               US                    Announces 2-yr FRN, plus 2/5/7 yr. Notes

Jan 22               Italy                  Announces details of CTZ/BTPei on 27 Jan

Jan 22               US                    Auctions Usd 15bn 10-yr TIPS

Jan 26               Germany           Eur 1.5bn 12M (Jan 2016) Bubills

Jan 26               Italy                  Announces details of BTP/CCTeu on 29 Jan

Jan 27              Holland                         Eur 1-2bn 2.75% Jan 2047 DSL (re-opening)

Jan 27               Spain                3 & 9M T-bill auction

Jan 27               Italy                  Auctions CTZ/BTPei

Jan 27               US                    Auctions 2-yr FRN, plus 2-yr Notes