EUR/JPY Fundamental Analysis October 16, 2014 Forecast

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Updated: Aug 25, 2015, 00:00 UTC

Analysis and Recommendations: The EUR/JPY added 20 points to trade at 135.32 as the euro tumbled after a day of lackluster economic data. Most European

EUR/JPY Fundamental Analysis October 16, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY added 20 points to trade at 135.32 as the euro tumbled after a day of lackluster economic data. Most European equity markets reversed course to end higher after Germany’s closely watched ZEW survey showed a sharp drop in economic sentiment. The Stoxx Europe 600 ended marginally lower, paring losses of as much as 1.4 per cent earlier. Germany’s DAX rose 0.15 per cent. German government bonds surged to their strongest level on record. German inflation is tipped to be confirmed at 0.8% in September as the European Central Bank (ECB) comes under pressure to address price instability and a stagnant recovery in the Eurozone.

Markets will therefore be watching ECB President Mario Draghi closely when he speaks in Frankfurt this evening. Draghi has had to defend the ECB against criticism that it has not done enough to boost the ailing economy. The ECB recently announced its asset backed securities and covered bonds programme but some analysts remain skeptical that it will make much of a difference.

The Bank of Japan should start paring its unprecedented easing soon or risk hurting people in its quest to stoke inflation, said Hideo Hayakawa, the central bank’s former chief economist. Pushing inflation to the bank’s 2 percent target in a short period will raise living costs without boosting employment or economic growth, Hayakawa said in an interview yesterday.

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
AUD	Consumer Sentiment	0.9%		-4.6%
CNY	CPI (MoM) (Sep)	0.5%	0.4%	0.2%
CNY	CPI (YoY) (Sep)	1.6%	1.7%	2.0%
CNY	PPI (YoY) (Sep)	-1.8%	-1.6%	-1.2%
JPY	Industrial Production		-1.5%	-1.5%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Sep)			56.5
EUR	Core CPI (YoY) (Sep)		0.7%	0.7%
EUR	CPI (MoM) (Sep)		0.4%	0.1%
EUR	CPI (YoY) (Sep)		0.3%	0.3%
USD	Initial Jobless Claims		290K	287K
CAD	Manufacturing Sales		-1.6%	2.5%
USD	Industrial Production		0.4%	-0.1%
USD	Phil Fed Manufacturing		20.0	22.5