EUR/JPY Fundamental Analysis November 3, 2014 Forecast

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Updated: Aug 25, 2015, 07:00 UTC

Analysis and Recommendations: The EUR/JPY gained 3 points to trade at 137.81 after the release of a slew of Japanese data and the Bank of Japan

EUR/JPY Fundamental Analysis November 3, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained 3 points to trade at 137.81 after the release of a slew of Japanese data and the Bank of Japan conference. The board members gave Kuroda’s experiment a one-year moratorium,” said a former central bank board member who still has close contacts with incumbent policymakers. “They decided to wait-and-see for a year. But now it’s time of reckoning.”

A divided board could undermine the public confidence essential to Kuroda’s success in embedding expectations of inflation, and leave markets fretting about how authorities will deal with the central bank’s massively expanded balance sheet.

Japan’s inflation slowed to its lowest pace in half a year, underlining the challenge to central bank chief Haruhiko Kuroda’s efforts to reflate the world’s third-biggest economy. Consumer prices excluding fresh food increased 3.0 percent in September from a year earlier, the statistics bureau said today in Tokyo, in line with a median projection in a Bloomberg News survey of economists. Stripped of the effect of April’s sales-tax increase, core inflation — the Bank of Japan’s key measure — was 1.0 percent.

Weak price gains are a blow to Kuroda, who is targeting 2 percent inflation and said in July there was no possibility that the bank’s price gauge would fall below 1 percent. The BOJ is forecast to maintain its unprecedented easing today, even as oil prices decline and the board considers moderating language on the consumer price outlook.

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 actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
JPY	Household Spending	-5.6%	-4.3%	-4.7%
JPY	Household Spending	1.5%	1.9%	-0.3%
JPY	National Core CPI (YoY)	3.0%	3.0%	3.1%
JPY	Tokyo Core CPI (YoY)	2.5%	2.5%	2.6%
AUD	PPI (YoY) (Q3)	1.2%	2.6%	2.3%
AUD	PPI (QoQ) (Q3)	0.2%	0.2%	-0.1%
AUD	Private Sector Credit	0.5%	0.4%	0.4%
JPY	BoJ Press Conference

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
AUD	AIG Manufacturing			46.5
AUD	Building Approvals			3.0%
CNY	Non-Manufacturing PMI			54.0
CNY	HSBC Mfg. PMI			50.4
EUR	Spanish Manufacturing			52.6
EUR	Italian Manufacturing		50.7	50.7
EUR	French Manufacturing		47.3	47.3
EUR	German Manufacturing		51.8	51.8
EUR	Manufacturing PMI		50.7	50.7
GBP	Manufacturing PMI			51.6
USD	ISM Employment		55.0	54.6
USD	ISM Manufacturing PMI		56.7	56.6