EUR/JPY Fundamental Analysis – January 8, 2016 -Forecast

Analysis and Recommendations:

The EUR/JPY dipped 10 points to 127.64 coming to its lowest level in a year. The Japanese currency continues to gain on safe haven trades which is upsetting the Bank of Japan’s hopes of keeping the currency weak. Anxious traders piled into the low-risk Japanese yen, which hovered near a three-month high versus the greenback and a nine-month peak against the euro.  The yen closed at a four-month high against the US dollar on Wednesday as stocks slumped worldwide, spurring demand for havens.

The US currency weakened against the euro and the yen after the Federal Open Market Committee minutes showed the central bank raised interest rates for the first time in almost a decade on a “close call” for some policy makers. The yen climbed to a four-month high against the dollar on concern China’s currency weakness reflects a slowing economy and as North Korea’s claim that it successfully tested its first hydrogen bomb added to demand for the safest assets.

FxEmpire provides in-depth analysis for each asset 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 up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Friday, January 9, 2016

Government Bond Auctions

Date Time and Country

Jan 11 12:00 Norway Announces details of bond auction on Jan 13

Jan 12 11:00 Austria Holds bond auction

Jan 12 11:00 Netherlands Euro 1-1.5bn 2.5% 2033 DSL

Jan 12 11:30 UK 0.125% 2046 Inflation-linked Gilt

Jan 12 n/a UK Announces details of Gilt auction on Jan 20

Jan 12 19:00 US Holds 3-year note auction

Jan 13 11:05 Norway Holds bond auction

Jan 13 11:10 Italy Holds BTP

Jan 13 11:30 Germany Euro 5bn Feb 2026 Bund

Jan 13 19:00 US Holds 10-year note auction

Jan 14 10:30 Spain Auctions Bonos/Obligaciones (Linkers?)

Jan 14 19:00 US Holds 30-year bond auction

Jan 14 n/a US Announces details of 10-yr TIPS auction on Jan 21

Jan 18 11:00 Belgium Holds OLO auction