EUR/JPY Fundamental Analysis – November 13, 2015 – Forecast

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Published: Nov 12, 2015, 04:56 UTC

Analysis and Recommendations: The EUR/JPY is trading at 132.25 up by 26 points as the yen weakened after comments yesterday from the Bank of Japan while

EUR/JPY Fundamental Analysis – November 13, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY is trading at 132.25 up by 26 points as the yen weakened after comments yesterday from the Bank of Japan while the euro rallied early in the session. On Wednesday Mario Draghi assured markets that he would add stimulus if necessary but he felt that the economy is beginning to turn around. Japan’s recovery may falter if China and other emerging economies see growth slow further, or if an expected U.S. interest rate hike triggers an unintended market shock.

Bank of Japan Gov. Haruhiko Kuroda on Wednesday repeated his stance of maintaining the current loose monetary policy until the 2% inflation target is hit.

He said at a parliamentary committee session that Japan is at the middle of its path to the BOJ’s inflation target, so the bank will continue with its easy monetary policy until 2% price rises are achieved.

Mr. Kuroda also said he expects inflation to move toward 2% once the impact of lower oil prices begin to taper off.

Speaking at the Bank of England’s Open Forum, Mario Draghi addressed the need for closer economic union among those countries sharing the euro. Analysts were expecting more detail, however, on the prospect of more quantitative easing by the central bank.

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:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Oct)	53.3		55.4
GBP	RICS House Price Balance (Oct)	49%	45%	44%
AUD	Employment Change (Oct)	58.6K	15.0K	-0.8K
AUD	Full Employment Change (Oct)	40.0K		-10.4K
AUD	Unemployment Rate (Oct)	5.9%	6.2%	6.2%

Upcoming Economic Events that you should be monitoring:

Friday, November 13, 2015

Cur.	Event	Actual	Forecast	Previous
JPY	Industrial Production (MoM) (Sep)		1.0%	1.0%
JPY	Tertiary Industry Activity Index		0.2%	0.1%
EUR	German GDP (YoY) (Q3)		1.8%	1.6%
EUR	German GDP (QoQ) (Q3)		0.3%	0.4%
EUR	GDP (YoY) (Q3)		1.7%	1.5%
EUR	GDP (QoQ) (Q3)		0.4%	0.4%
EUR	Trade Balance (Sep)		18.2B	11.2B
USD	Core PPI (MoM) (Oct)		0.1%	-0.3%
USD	Core Retail Sales (MoM) (Oct)		0.4%	-0.3%
USD	PPI (MoM) (Oct)		0.2%	-0.5%
USD	Retail Sales (MoM) (Oct)		0.3%	0.1%
USD	Business Inventories (MoM) (Sep)		0.1%	0.0%
USD	Michigan Consumer Expectations		84.0	82.1
USD	Michigan Consumer Sentiment (Nov)		91.5	90.0
USD	FOMC Member Mester Speaks
USD	Baker Hughes U.S. Rig Count			572