EUR/JPY Fundamental Analysis October 27, 2014 Forecast

By:

Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendations: The EUR/JPY eased by 15 points to trade at 136.78 as the euro recovered in the morning session. The euro declined for day 3

EUR/JPY Fundamental Analysis October 27, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY eased by 15 points to trade at 136.78 as the euro recovered in the morning session. The euro declined for day 3 versus the greenback as a report showed French manufacturing contracted more this month than economists forecast. The euro weakened versus 12 of its 16 major peers. An index of French manufacturing slid to 47.3 in October, from 48.8 the previous month, Markit Economics said. The median estimate in a Bloomberg News survey of analysts was for a reading of 48.5. A similar index for the services industry fell to 48.1, below the 50 level which separates expansion from contraction for a second month.

The German 10-year yield rose nearly 3 basis points to 0.8590% after Markit’s purchasing managers index data showed that the eurozone’s manufacturing activity improved in October, as strong growth in Germany compensated for a weak reading out of France. While the dollar has regained more than half the ground it has lost since Oct. 3, when it hit a six-year high just below ¥110. David Woo, head of global rates and currencies research at Bank of America Merrill Lynch, said he expects the dollar to end the year around ¥108, its current level.

The euro rose sharply against the yen, trading at ¥136.83 yen Thursday, compared with ¥135.51 late Wednesday. Bank of Japan Governor Haruhiko Kuroda said this month a weaker yen in line with the fundamentals of the economy is positive. He also said the BOJ will increase its unprecedented stimulus program if needed.

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
NZD	Trade Balance (MoM)	-1,350M	-700M	-472M
NZD	Trade Balance (YoY)	650M	1,510M	2,020M

Upcoming Economic Events that you should be monitoring:

Cur.		Event	Actual	Forecast	Previous
	Holiday	New Zealand – Labour Day
EUR		German Business Expect		98.4	99.3
EUR		German Current Assess		109.5	110.5
EUR		German Ifo Climate Ind		104.1	104.7
USD		Pending Home Sales		0.3%	-1.0%