EUR/JPY Fundamental Analysis – November 9, 2015 – Forecast

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Published: Nov 6, 2015, 04:35 UTC

Analysis and Recommendations: The EUR/JPY is down 6 points at 1.3246 as the euro continues to weaken on words from Mario Draghi of the ECB. The dollar

EUR/JPY Fundamental Analysis – November 9, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY is down 6 points at 1.3246 as the euro continues to weaken on words from Mario Draghi of the ECB. The dollar gained on the yen but slipped against the euro as traders waited for the US jobs report that could support the Federal Reserve increasing interest rates.

The Labor Department’s October report was expected to show job growth strengthened to 181,000 new payrolls from September’s paltry 142,000 reading.

After the greenback’s strong gains on Wednesday, on the back of Fed Chair Janet Yellen’s hawkish comments about a December hike, investors were hesitant to take the dollar higher much ahead of the jobs report.

While the euro edged up 0.2% on the day to $1.0884 Thursday, it has slumped 4.4% against the dollar since mid-October. The euro’s late Wednesday level was its weakest since July, and the currency remains far below its summer peak of $1.1714.

The drop is reminiscent of a free fall at the beginning of the year, when the euro tumbled from above $1.20 to below $1.05 in barely more than two months. Then, as now, many investors thought U.S. interest rates were heading up and European rates were headed down. The launch of the ECB’s bond-buying program signaled a long horizon of easy money.

But over the spring and summer, doubts grew over the Fed’s plans to raise rates, and the euro rallied. At the same time, signs of economic recovery in the eurozone spurred talk that the ECB might end its bond-buying sooner than expected. Europe’s central bank has said it would go on purchasing debt at least until September 2016.

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.

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