EUR/JPY Fundamental Analysis October 6, 2014 Forecast

By:

Updated: Aug 24, 2015, 22:00 UTC

Analysis and Recommendations: The EUR/JPY gained 29 points to trade at 137.67 as the euro gained steadily after the ECB meeting and press conference. Mr.

EUR/JPY Fundamental Analysis October 6, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained 29 points to trade at 137.67 as the euro gained steadily after the ECB meeting and press conference. Mr. Draghi left markets longing for more information or stimulus. Helping to take investors’ minds off Europe was a pick-up in stocks, which entered a correction yesterday, but rose overnight as investors picked-up some bargains. A fall in jobless claims also helped overcome the earlier weakness, with the Labour Department revealing claims dropped to a better-than-expected 287,000 last week.

Turning to the turmoil in Europe, the European Central Bank announced it is keeping the benchmark interest rate at 0.05 per cent and gave details of its asset purchase program which it announced last month. The bank’s chief Mario Draghi said he will start buying covered bonds this month and other assets in the final three months of the year and the program will last for two years. “The new measures will support specific market segments and play a key role in the financing of the economy,” he said.

“They will thereby further enhance the functioning of the monetary policy transmission mechanism, facilitate credit provision to the broad economy and generate positive spill-overs to other markets.” Mr Draghi indicated that the ECB has more ammunition to deploy if needed.

Bad weather this summer, including successive typhoons, may have pushed economic growth down by 0.8 percentage point to 2.4 points in annualized real terms in the July-September quarter, the government said.

The estimate, presented Wednesday by the Cabinet Office to a meeting of the Council on Economic and Fiscal Policy, comes amid growing fears the economy is still lethargic after stalling in the wake of the first stage of the sales tax hike, which raised it to 8 percent on April 1.

“The economy showed signs of some weakness this summer,” Prime Minister Shinzo Abe said during the meeting. “We need to carefully monitor how the economy will recover down the road.”

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: