EUR/JPY Fundamental Analysis October 31, 2014 Forecast

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Updated: Aug 25, 2015, 07:00 GMT+00:00

Analysis and Recommendations: The EUR/JPY added 5 points to trade at 137.62 as the euro claimed a couple of points in the early session as traders begin

EUR/JPY Fundamental Analysis October 31, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY added 5 points to trade at 137.62 as the euro claimed a couple of points in the early session as traders begin to focus on the Bank of Japan meeting tomorrow. Japan will also release its monthly data drop on Friday. Asian stocks fell and the dollar surged to a three-week high versus the yen after the U.S. Federal Reserve ended its massive quantitative easing programme, as expected, but laced its economic assessment with a bit of optimism. The Bank of Japan meets tomorrow after data showed this week that industrial production jumped the most since January and retail sales rose more than analysts expected in September.

The central bank will consider moderating its language on inflation in a report to take account of the impact of lower oil prices, according to people familiar with central bank’s discussions.

The Government Pension Investment Fund will increase its domestic equity allocation to 24 percent of assets from 12 percent, according to the median estimate of 12 fund managers, strategists and economists polled by Bloomberg over the past two weeks. That’s up from 20 percent in a similar survey in May. The Topix index soared 4 percent on Oct. 20 on a Nikkei newspaper report that the fund would set a 25 percent local-share target.

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	Interest Rate Decision	3.50%	3.50%	3.50%
NZD	RBNZ Rate Statement
AUD	HIA New Home Sales	0.0%		3.3%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
JPY	Household Spending		-4.3%	-4.7%
JPY	National Core CPI (YoY)		3.0%	3.1%
JPY	Tokyo Core CPI (YoY)		2.5%	2.6%
AUD	PPI (YoY) (Q3)			2.3%
AUD	PPI (QoQ) (Q3)			-0.1%
AUD	Private Sector Credit		0.4%	0.4%
JPY	BoJ Press Conference
EUR	German Retail Sales		-1.0%	2.5%
EUR	French Consumer		-0.3%	-0.7%
EUR	Italian CPI (MoM)		-0.2%	-0.4%
EUR	Core CPI (YoY) (Oct)		0.8%	0.8%
EUR	CPI (YoY) (Oct)		0.4%	0.3%
EUR	Unemployment Rate		11.5%	11.5%
USD	Core PCE Price Index			1.5%
CAD	GDP (MoM) (Aug)		0.0%	0.0%
USD	Chicago PMI (Oct)		60.0	60.5
USD	Michigan Consumer		86.4	86.4