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EUR/JPY Fundamental Analysis October 24, 2014 Forecast

By:
Barry Norman
Updated: Aug 25, 2015, 02:00 UTC

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

EUR/JPY Fundamental Analysis October 24, 2014 Forecast
EUR/JPY Fundamental Analysis October 24, 2014 Forecast
EUR/JPY Fundamental Analysis October 24, 2014 Forecast

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

 

 

EURJPY(15 minutes)20141023054606

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

 

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