EUR/JPY Fundamental Analysis October 28, 2014 Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendations: The EUR/JPY gained 15 points as the euro recovered a bit after the ECB stress test held no surprises on Sunday. The pair is

EUR/JPY Fundamental Analysis October 28, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained 15 points as the euro recovered a bit after the ECB stress test held no surprises on Sunday. The pair is holding at 137.17. The Finance Ministry’s sale of 5.7 trillion yen ($53.2 billion) in three-month debt had a record-low yield of minus 0.0037 percent as buyers paid 100.0010 yen on average for securities that mature at 100 yen. The Bank of Japan has bought bills that had negative yields in the market last month as it pushed ahead with its goal of increasing the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.

The dollar extended its rally versus the yen to six days, the longest since August, as a report showing the fewest initial jobless claims in 14 years countered bets the U.S. economy will suffer from sluggish global growth.

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. The prime minister this month told the Financial Times that while it is necessary to raise the tax for the benefit of future generations, it would be “meaningless” if this inflicted too much damage on the country’s economy. This was largely a repetition of Abe’s position.

The two-step tax increase was decided by major parties and written into law before Abe came to power in 2012, but it requires the prime minister to certify that the economy is strong enough to withstand a further hike.

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	New Zealand – Labour Day
USD		Pending Home Sales		0.5%	-1.0%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
JPY	Retail Sales (YoY) (Sep)		0.6%	1.2%
USD	Core Durable Goods		0.5%	0.4%
USD	Durable Goods Orders		0.6%	-18.4%
USD	S&P/CS HPI Composite		5.8%	6.7%
USD	Consumer Confidence		87.0	86.0