EUR/JPY Fundamental Analysis October 29, 2014 Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendations: The EUR/JPY gained 12 points to reach 137.04 as the euro continued to march upward adding 8 points this morning against the

EUR/JPY Fundamental Analysis October 29, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained 12 points to reach 137.04 as the euro continued to march upward adding 8 points this morning against the US dollar. Japanese retail sales beat expectations, surprising markets which seemed to give pause to the possibility of additional stimulus this week from the Bank of Japan and might urge Prime Minister Abe to move forward with the second part of the tax increase. Sales rose at their fastest pace since the first quarter in September as investors began to shake off the effects of a consumption tax hike. Retail sales gained 2.3 percent, above expectations for a 0.6 percent rise in a Reuters poll and up from a 1.2 percent rise in August, data showed on Tuesday. It marked the highest retail sales reading since March.

The euro meanwhile was helped by a better-than-expected result in eurozone bank stress tests. ‘The euro was a touch firmer after the European Central Bank reported over the weekend that the vast majority of area banks had passed stress test exams on their overall health. But upside for the euro looked limited after a key survey of German business confidence fell for the sixth time in as many months. The Ifo business climate index for Germany fell to 103.2 points in October from 104.7 points in September, the lowest level since December 2012.

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
	JPY		Retail Sales (YoY) (Sep)	2.3%	0.6%	1.2%

Upcoming Economic Events that you should be monitoring:

Time	Cur.	Imp.	Event	Actual	Forecast	Previous
	JPY		Industrial Production		2.2%	-1.9%
	NZD		Business Confidence			13.4%
	CAD		RMPI (MoM) (Sep)		-1.0%	-2.2%
	USD		FOMC Statement
	USD		Fed Funds Target Rate		0.25%	0.25%