EUR/JPY Fundamental Analysis October 30, 2014 Forecast

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Updated: Aug 25, 2015, 07:00 UTC

Analysis and Recommendations: The EUR/JPY is flat this morning trading at 137.37 with little market reaction to the better than expected turning around in

EUR/JPY Fundamental Analysis October 30, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY is flat this morning trading at 137.37 with little market reaction to the better than expected turning around in Japanese industrial production. Japanese manufacturers see October output down 0.1 percent on month, slightly better than their previous forecast for a 0.2 percent decline, according to the Ministry of Economy, Trade and Industry. Manufacturers see November output rising 1.0 percent on month. Industrial production soared to 2.7%.

The euro’s gains against the dollar also helped the U.S. currency weaken versus the yen, traders also said. The European single currency attracted purchases despite Sunday’s European Central Bank report that 25 of the 130 largest banks in the eurozone were a total of €25 billion short of capital in stress tests. Buying to close short positions in the euro strengthened following the ECB report as “such results had been factored in,” an official at a foreign securities firm said.

Japanese Retail Sales was unexpectedly strong in September, climbing 2.3%, its strongest gain since March and well above the estimate of 0.9%. There has been concern about consumer spending in Japan after the sales tax was raised in April from 5% to 8%. The government plans to increase the tax to 10%, but is wary about hurting the economy, which has been marked by modest growth.

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	Industrial Production	2.7%	2.2%	-1.9%
NZD	Business Confidence	26.5%		13.4%
CAD	RMPI (MoM) (Sep)		-1.0%	-2.2%
USD	FOMC Statement
USD	Fed Funds Target Rate		0.25%	0.25%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	RBNZ Rate Statement
AUD	HIA New Home Sales			3.3%
GBP	Nationwide HPI (MoM)		0.3%	-0.2%
GBP	MPC Member Cunliffe
EUR	Spanish GDP (QoQ)		0.5%	0.6%
EUR	German Unemployment		5K	13K
EUR	German Unemployment		6.7%	6.7%
USD	GDP (QoQ) (Q3)		3.0%	4.6%
USD	GDP Price Index (QoQ)		2.0%	2.1%
USD	Initial Jobless Claims		283K	283K
USD	Fed Chair Yellen
EUR	German CPI (MoM)		-0.1%	0.0%