EUR/JPY Fundamental Analysis October 8, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY gained 6 points as the euro traded on a weak note but the Japanese yen was weaker ahead of the Bank of Japan decision due today. There is speculation that the Bank might inject some additional stimulus or give clues on future policy changes. The EURJPY is trading at 137.72.  Investors remained reluctant to chase the market higher ahead of the Bank Of Japan’s policy meeting and the governor’s speech later. The central bank is likely to maintain its massive monetary stimulus and offer a bleaker view on factory output. Kuroda also stressed anew that the BOJ is ready to ease monetary policy further if the economy and prices undershoot its forecasts.

The BOJ governor said the most important thing was to achieve 2% price growth and make it take root in Japan’s economy.

Mr. Kuroda said investors may have driven the yen lower looking at the diverging directions of U.S. and Japanese monetary policies. While a drop in the Japanese currency hurts profits of non-manufacturers by lifting the costs of their businesses, it helps boost exports and the earnings and investment of multinational Japanese companies, he added.

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:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction