EUR/JPY Fundamental Analysis – November 23, 2015 – Forecast

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Published: Nov 20, 2015, 04:53 UTC

Analysis and Recommendations: The EUR/JPY dipped 19 points to 131.69 as the euro eased in the morning session. Analysts feel the BoJ will be forced to

EUR/JPY Fundamental Analysis – November 23, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY dipped 19 points to 131.69 as the euro eased in the morning session. Analysts feel the BoJ will be forced to expand its massive 80 trillion yen annual asset-buying scheme, launched over two years ago to kick start growth and end deflation.

But the BoJ opted to do nothing at the end of its two-day policy meeting, as it did last month – when expectations were even higher it would take action. While the Bank of Japan literally ignored the renewed fall in in its statement, markets think that a likely moderation in underlying inflation will eventually force policymakers to introduce more stimulus.

The Bank of Japan kept its monetary stimulus program unchanged on Thursday, with Governor Haruhiko Kuroda holding fast to his view that the corporate capital expenditure vital to economic growth will pick up – suggesting that no new monetary easing is imminent.

The BOJ offered a slightly more cautious view on inflation expectations – or how the public perceives future price moves – than at last month’s meeting, underscoring its concerns over a lack of success in nudging companies into boosting wages and investment.

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
JPY		BoJ Monthly Report

Upcoming Economic Events that you should be monitoring:

Monday, November 23, 2015

Cur.	Event	Actual	Forecast	Previous
	Japan – Labour Thanksgiving Day
EUR	German Manufacturing PMI (Nov)		52.1	52.1
EUR	German Services PMI (Nov)		54.3	54.5
EUR	Manufacturing PMI (Nov)		52.3	52.3
EUR	Markit Composite PMI (Nov)			53.9
EUR	Services PMI (Nov)		54.0	54.1
EUR	Eurogroup Meetings
USD	Manufacturing PMI (Nov)			54.1
USD	Existing Home Sales (Oct)		5.44M	5.55M
USD	Existing Home Sales (MoM) (Oct)			4.7%