EUR/JPY Fundamental Analysis October 21, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendations: The EUR/JPY gained 47 points as the yen continued to decline after a speech by Bank of Japan Governor Kudora. Bank of Japan

EUR/JPY Fundamental Analysis October 21, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained 47 points as the yen continued to decline after a speech by Bank of Japan Governor Kudora. Bank of Japan (BOJ) Governor Kuroda – Japan’s economy continues to recover moderately. Concerns that Mr Abe’s plan to revive the Japanese economy is running out of steam added to gloom over global growth prospects that stirred financial markets around the world last week.

In an interview with the Financial Times, Japan’s prime minister, said the planned tax increase from 8 per cent to 10 per cent was intended to help secure pension and health benefits for “the next generation”. But he added: “On the other hand, since we have an opportunity to end deflation, we should not lose this opportunity.”

The Japanese economy shrunk 7.1 per cent between April and June compared with a year ago after Mr Abe’s government raised consumption tax from 5 percent to 8 percent. A second rise has strong backing from the Bank of Japan, the finance ministry, big business and the International Monetary Fund, which all want action to reduce the country’s mountainous debt. A postponement would require a change in the law.

Analysts have said the performance of Japan’s economy over the third quarter will likely determine whether the government proceeds with a second tax hike to 10 percent in 2015.

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
	Holiday	Kenya – Mashujaa Day
JPY		BoJ Governor Kuroda

Upcoming Economic Events that you should be monitoring:

Cur.	Imp.	Event	Actual	Forecast	Previous
CNY		Fixed Asset Investment		16.3%	16.5%
CNY		GDP (QoQ) (Q3)		1.8%	2.0%
CNY		GDP (YoY) (Q3)		7.2%	7.5%
CNY		Industrial Production		7.5%	6.9%
USD		Existing Home Sales		5.10M	5.05M
USD		Existing Home Sales		1.0%	-1.8%