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EUR/JPY Fundamental Analysis May 1, 2014 Forecast
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Analysis and Recommendations: The EUR/JPY eased by 34 points to trade at 141.43 against a weaker euro. The yen gained momentum after data this morning
The EUR/JPY eased by 34 points to trade at 141.43 against a weaker euro. The yen gained momentum after data this morning showed that industrial production missed expectations but was much improved over the previous month. The Japanese yen gained against the euro after weaker-than-expected German inflation, stoking speculation prices may also be weaker across the Eurozone and adding to pressure on the European central Bank to act to weaken its currency.
Germany’s annual estimated harmonized consumer price index was at 1.1 percent, missing the 1.3 percent rate expected by economists. The figures from German statistics agency Destatis come a day before inflation data is released for the Eurozone, which may print weaker and add to calls for the ECB to act to drive down the euro.
The ECB’s options could include moving to negative interest rates or quantitative easing though it may be two months before the central bank’s strategy is known, he said. Tensions in Ukraine have added to a mixed global picture for financial markets, he said.
As expected today the Bank of Japan kept its current policy unchanged and had very little comments on the current outlook for the economy and gave no indications of future easing. The BoJ left everything unchanged, which means that the central bank aims to buy JGBs to the tune of 50trln yen annually
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 April 30, 2014 actual v. forecast
|
Cur. |
Event |
Actual |
Forecast |
Previous |
|
|
NZD |
Building Consents (MoM) |
8.3% |
2.0% |
-1.7% |
|
|
JPY |
Industrial Production (MoM) |
0.3% |
0.5% |
-2.3% |
|
|
NZD |
ANZ Business Confidence |
64.8% |
|
67.3% |
|
|
AUD |
Private Sector Credit (MoM) |
0.4% |
0.4% |
0.4% |
|
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Currency |
Event |
Forecast |
Previous |
|
May 01 |
CNY |
50.3 |
||
|
|
USD |
0.2% |
0.1% |
|
|
|
USD |
0.6% |
0.3% |
|
|
|
USD |
54.0 |
53.7 |
|
|
|
USD |
53.0 |
51.1 |
Government Bond Auction
Date Time Country
May 05 09:00 Norway
May 06 09:15 Austria
May 06 14:30 UK
May 06 17:00 US
May 07 09:03 Sweden
May 07 09:30 Germany
May 07 09:30 UK
May 07 15:30 Italy
May 07 17:00 US
May 08 00:30 Japan
May 08 08:30 Spain
May 08 09:00 Ireland
May 08 10:00 Norway
May 08 15:30 Italy
May 08 17:00 US
May 08 09:03 Sweden
About the Author
Barry Normanauthor
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