EUR/JPY Fundamental Analysis October 2, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY is trading at 1.3866 with the euro gaining momentum against the weak JPY. The pair has been evenly paced with both of the currencies at their weakest pricing. The euro weakened after data showing inflation in the euro region slowed to an annual 0.3 percent pace in September, from 0.4 percent the previous month, moving the region closer to deflation which the ECB is trying to avert. That increased speculation that the ECB may announce further stimulus measures to boost inflation at its meeting tomorrow.

“The latest inflation data suggests that price pressures in the region are non-existent as demand remains tepid and fears of disinflation begin to take hold,” Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, said in a note. “The figures are likely to put further pressure on ECB to begin an aggressive easing programme in order to stimulate demand.”

ECB president Mario Draghi is likely to face questions tomorrow about any additional stimulus plans, BK’s Schlossberg said.

The weakness of the euro was exceeded by the worries over the Japanese economy, which showed a significant drop in industrial production and other data was mixed at the end of the month. This morning’s release of the Tankan index was mixed with manufacturing printing above expectations and non-manufacturing below.

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:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 02 08:30 Spain Auctions 1.4% Jan 2020 & 2.75% Oct 2024 Obligations

Oct 02 08:50 France Eur 7-8bn 1.75% May 2023, 1.75% Nov 2024 & 2.75% Oct 2027

Oct 02 15:00 US Announces details of 3/10Y Note & 30Y bond auctions on Oct

Oct 07 06:00 Swiss Announces details of optional bond auction on Oct 08

Oct 07 09:00 Norway Bond auction

Oct 07 09:15 Austria RAGB auction

Oct 07 9:30 UK Auctions 3.5% 2045 Gilt

Oct 07 15:30 Italy Announces details of BOT auction on Oct 10

Oct 07 17:00 US 3Y Note auction

Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction