EUR/JPY Fundamental Analysis October 13, 2014 Forecast

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Updated: Aug 25, 2015, 00:00 UTC

Analysis and Recommendations: The EUR/JPY fell by 5 points to trade at 136.88 as the euro continued to recover. The yen paid little attention to the

EUR/JPY Fundamental Analysis October 13, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY fell by 5 points to trade at 136.88 as the euro continued to recover. The yen paid little attention to the lackluster Tertiary Industry Index. The Bank of Japan minutes kept the traders supportive of the Asian currency. The euro stayed on the back foot early on Friday, having come under renewed pressure overnight after an eye-catching plunge in German exports raised fears of a recession in Europe’s largest economy. The grim German data reinforced expectations that the European Central Bank will eventually have to inject more stimulus, an option the bank reiterated in its monthly bulletin.

Christine Lagarde, the head of the International Monetary Fund, has warned that the eurozone is displaying the symptoms of Japan’s longstanding economic problems and needs fresh moves to avert the threat of recession.

With the IMF’s annual meeting in Washington likely to be dominated by the failure of Europe to emerge from the financial crisis of six years ago, Lagarde dropped a broad hint that she wanted Germany to run down its budget surplus to boost growth. She said there was a “serious risk” of a recession in the eurozone if nothing was done to avert a new downturn.

Bank of Japan board members agreed that exports remained weak and a few of them were cautious about a sustainable rise in exports, the minutes of the bank’s Sept. 3-4 policy meeting released Friday showed.

Despite sluggish exports and factory output, the nine-member board still believed that the positive domestic cycle from income to spending was in place in both the household and corporate sectors, and that Japan’s economy was likely to “continue its moderate recovery trend,” overcoming the drag from the April sales tax hike.

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	Monetary Meeting
JPY	Tertiary Industry	-0.1%	0.2%	-0.3%
AUD	Home Loans	-0.9%	0.1%	0.3%

Upcoming Economic Events that you should be monitoring:

Cur.	Imp.	Event	Actual	Forecast	Previous
	Holiday	Japan – Health-Sports Day
	Holiday	Canada – Thanksgiving Day
NZD		FPI (MoM) (Sep)			0.3%
CNY		Exports (YoY) (Sep)			9.4%
CNY		Imports (YoY) (Sep)			-2.4%
CNY		Trade Balance (Sep)			49.83B