EUR/JPY Fundamental Analysis October 3, 2014 Forecast

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Updated: Aug 24, 2015, 22:00 UTC

Analysis and Recommendations: The EUR/JPY gained a single pip to trade at 137.46. The euro recovered this morning ahead of the ECB meeting and press

EUR/JPY Fundamental Analysis October 3, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained a single pip to trade at 137.46. The euro recovered this morning ahead of the ECB meeting and press conference scheduled later today. The Japanese yen also gained a bit of momentum as the US dollar eased. Tensions and protests in Hong Kong continued while the Chinese government lets the situation fizzle out without intervening. The impression that Abe is losing his nerve on fixing Japan’s debt problem could undermine the very confidence that has underpinned the early success of Abenomics. The main scenario among economists is for Abe to press ahead with the tax hike while ordering more government spending to bolster growth to soften the blow, perhaps joined by the Bank of Japan expanding its already massive monetary stimulus.

Central Bank Governor Haruhiko Kuroda has called on Abe to raise the tax as scheduled, warning that while the risk of a market backlash is slim for now, it would be hard to control if it erupted. A delay could also complicate Japan’s economic diplomacy within the Group of 20 big nations. The International Monetary Fund in July said Tokyo should press on with the tax hike and take further measures to lower the public debt burden, as well as accelerate structural reforms.

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	Building Approvals (MoM)	3.0%	1.0%	2.1%
AUD	Trade Balance (Aug)	-0.787B	-0.700B	-1.075B

Remember the ECB Press Conference on Thursday evening

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Sep)		59.1	60.5
USD	Nonfarm Payrolls (Sep)		215K	142K
USD	Unemployment Rate		6.1%	6.1%
USD	ISM Non-Mfg. PMI		58.5	59.6