EUR/JPY Fundamental Analysis – November 4, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY dipped 6 points as the euro eased a bit, while Japan is on holiday today. The euro gained on stronger Eurozone manufacturing PMI printed better than expected on Monday helping give you euro a bit of a lift. The euro is trading in the green this morning but yen traders are taking advantage of the cheaper currency to buy up the yen.  Bloomberg ran a story this morning entitled Sell Euro Buy Yen.

The story stated “They’re betting the European Central Bank will boost its stimulus program while its Tokyo-based counterpart stands pat — an expectation that’s reflected in the biggest gap in interest-rate swaps denominated in the euro and yen since the euro’s 1999 debut. The shared currency touched a six-month low versus the yen last week.”

It’s just the latest example of how central banks are driving markets. The euro slid to its lowest since April versus the yen after BOJ Governor Haruhiko Kuroda decided last week against stepping up the central bank’s monetary stimulus. That was one week after Mario Draghi signaled he may expand the ECB’s quantitative-easing program before year-end. 

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, November 4, 2015

Government Bond Auctions

Date Time Country

Nov 03 10:10 Austria Holds RAGB bond sale

Nov 04 15:30 Sweden Announces details of Bond on 11 Nov

Nov 04 N/A Holland Announces details of Bond on 10 Nov

Nov 05 09:30 Spain Auctions Bonos

Nov 05 09:50 France Auctions OATs

Nov 05 10:03 Sweden Holds I/L bond auction

Nov 09 12:00 Norway Details bond auction on 11 Nov

Nov 09 15:30 Italy Announces details of BTPs/CCTeu on 12 Nov

Nov 09 N/A US Holds 3-year note auction

Nov 10 10:30 UK 0.125% 2058 I/L Gilt auction

Nov 10 N/A Holland Eur 2.0-3.0bn 0% Apr 2018 DSL

Nov 10 N/A US Holds 10-year note auction

Nov 11 10:03 Sweden Holds bond auction

Nov 11 11:15 Norway Holds bond auction

Nov 11 10:30 Germany Eur 3bn 0.25% Oct 2020 Bobl

Nov 12 10:10 Italy Auctions BTPs/CCTeus

Nov 12 10:30 UK 4.25% 2039 Gilt auction

Nov 12 N/A US Holds 30-year bond auction