EUR/JPY Fundamental Analysis – November 17, 2015 – Forecast

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Published: Nov 16, 2015, 05:05 UTC

Analysis and Recommendations: The EUR/JPY tumbled 75 points as the euro fell and the Japanese yen soared on safe haven moves. The pair is trading at

EUR/JPY Fundamental Analysis – November 17, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY tumbled 75 points as the euro fell and the Japanese yen soared on safe haven moves. The pair is trading at 131.34 as the euro tanked after the weekends terrorism attack put pressure on the Eurozone as focus has now shifted from economic policy to security and closing borders. At the G20 meeting this weekend in Turkey all scheduled meeting were revised to deal with the rise in attacks by ISIS.

Asian shares fell after the terrorist attacks in Paris over the weekend and Japan returned to recession. Japan’s Nikkei dropped more than 1 percent after the government announced Monday morning that July-September GDP fell 0.8 percent. That was more than the 0.2 percent expected by economists, putting the country back in recession after a 0.7 percent decline in the second quarter.

“There is no doubt that the attacks in Paris will contribute to short-term investor nervousness,” Bloomberg reported Shane Oliver, Sydney-based strategist at AMP Capital Investors Ltd., as saying. “I think history will repeat itself. It will just be a short selloff in response to the Paris attacks.”

The headline figure was negative, which was in line with most economists’ forecasts after earlier data showed weak industrial production during the quarter. GDP also fell at an annualized pace of 0.7% in the April-June quarter. Two consecutive quarters of contraction meets one common definition of a recession.

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.	Imp.	Event	Actual	Forecast	Previous
NZD		Core Retail Sales (QoQ)	1.0%	1.4%	0.0%
NZD		Retail Sales (QoQ) (Q3)	1.6%	1.3%	0.1%
JPY		GDP (YoY) (Q3)	-0.8%	-0.2%	-1.2%
JPY		GDP (QoQ) (Q3)	-0.2%	-0.1%	-0.3%

Upcoming Economic Events that you should be monitoring:

Tuesday, November 17, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	CPI (MoM) (Oct)		0.1%	-0.1%
GBP	CPI (YoY) (Oct)		-0.1%	-0.1%
GBP	PPI Input (MoM) (Oct)		0.2%	0.6%
EUR	German ZEW Current Conditions		55.5	55.2
EUR	German ZEW Economic Sentiment		6.0	1.9
USD	Core CPI (YoY) (Oct)		1.9%	1.9%
USD	Core CPI (MoM) (Oct)		0.2%	0.2%
USD	CPI (MoM) (Oct)		0.2%	-0.2%
USD	Industrial Production (MoM) (Oct)		0.1%	-0.2%