Analysis and Recommendations: The EUR/JPY added 4 points to trade at 135.58 after although the euro continued to ease against its crosses. A decline in
Analysis and Recommendations:
The EUR/JPY added 4 points to trade at 135.58 after although the euro continued to ease against its crosses. A decline in foreign bond buying and investments helped send the yen tumbling making it weak against the even weaker euro. Several sources told Reuters on Tuesday the ECB was considering buying corporate bonds on the secondary market in an effort to boost the flailing euro zone economy, and could begin buying the bonds early next year.
ECB Governing Council member Luc Coene told Belgian media there were no concrete plans for corporate bond purchases, but said this could be a way to prevent the bank from paying too much for just covered bonds and asset-backed securities. Officials have kept the door open to doing more. “We are ready to alter the size and, or, the composition of our unconventional interventions, and therefore of our balance sheet, as required,” ECB President Mario Draghi said on Oct. 9. The ECB’s consideration of corporate bond purchases was reported earlier on Tuesday by Reuters.
Bank of Japan bought 2.62t yen ($25b) of Japan’s treasury-discount bills from financial companies today, compared with the 3t yen that the BOJ offered to acquire. This is the first time the central bank failed to meet its purchase target for T-bills since at least April 2013, when Governor Kuroda stepped up quantitative easing. High quality global journalism requires investment. Interest rate strategists blamed the global environment, with uncertainty stalking markets and putting a premium on cash and short-term liquidity. The missed target also highlights the BoJ’s predicament as it pumps out liquidity to a market of largely reluctant borrowers.
As the economy remains sluggish and a growing band of analysts considers the targeted 2 per cent inflation rate by around fiscal 2015 is ambitious, all eyes are on whether or not the BoJ will be forced to take bolder easing action.
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 |
RBA Governor Stevens |
|
|
|
|
|
|
NZD |
CPI (YoY) (Q2) |
1.0% |
1.3% |
1.6% |
|
|
|
NZD |
CPI (QoQ) (Q2) |
0.3% |
0.5% |
0.3% |
|
|
|
JPY |
Foreign Bonds Buying |
-1,169.1B |
|
784.2B |
||
|
JPY |
Foreign Investments |
-412.6B |
|
-254.6B |
||
|
AUD |
NAB Quarterly Business |
6 |
|
6 |
|
|
|
JPY |
Manufacturing PMI |
52.8 |
52.1 |
51.7 |
|
|
|
CNY |
HSBC Mfg. PMI |
50.4 |
50.3 |
50.2 |
Upcoming Economic Events that you should be monitoring:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
NZD |
Trade Balance (MoM) |
|
-700M |
-472M |
|
|
|
NZD |
Trade Balance (YoY) |
|
1,510M |
2,020M |
|
|
|
GBP |
GDP (QoQ) (Q3) |
|
0.7% |
0.9% |
|
|
|
GBP |
GDP (YoY) (Q3) |
|
3.0% |
3.2% |
|
|
|
USD |
New Home Sales (Sep) |
|
470K |
504K |
|
|
|
USD |
New Home Sales (MoM) |
|
-5.8% |
18.0% |
Government Bond Auction
Date Time Country Auction
Oct 23 11:03 Sweden Sek 1bn 0.5% Jun 2017 I/L bond
Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30
Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28
Oct 23 19:00 US USD 7bn 30Y TIPS auction
Oct 24 17:30 Italy Announces details of BOT auction on Oct 29
Oct 27 12:30 Germany Eur 2.0bn new 12M Bubill (Oct 2015) auction
Oct 27 18:30 Italy Announces details of BTP/CCTeu auctions on Oct 30
Oct 27 12:10 Italy BTPei/CTZ auctions
Oct 28 12:10 Italy BOT auction
Oct 28 19:00 US 2Y Note auction
Oct 29 12:03 Sweden Bond auction
Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction
Oct 29 17:30 US 2Y FRN auction
Oct 29 19:00 US 5Y Note auction
Oct 30 12:10 Italy BTP/CCTeu auctions
Oct 30 19:00 US 7Y Note auction