EUR/JPY Fundamental Analysis – September 11, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY dipped 7 points to trade at 134.95 as traders moved into the yen.

Investors´ appetite for risk returned on a wave of rallies across global market stocks markets after they were hammered by intense volatility in recent weeks amid long-running concerns about China´s economy as well as the Federal Reserve´s plans to increase interest rates. “It´s a bit of a continuation of what we saw in the European and American session and that´s a fairly classical risk-on move by markets,” Sam Tuck, senior currency strategist at ANZ Bank New Zealand, told Bloomberg News. “Stock markets are still doing the driving at the moment for currencies.”

But the 19-nation currency was higher 134.49 yen against 134.22 yen, after Eurozone second-quarter economic growth was revised higher on Tuesday, to 0.4 percent quarter on quarter, from 0.3 percent.

Currency traders appeared to stay cautious due to persistent anxieties about the Chinese economy. “China’s latest trade data (for August) suggested no change in the situation,” an official of a bank-affiliated brokerage house said. Traders are focusing on the release on Thursday of China’s consumer price index for August.

China-style volatility spread to Japan stocks Thursday as the Nikkei Stock Average reversed its previous-day surge, leading the region lower. China stocks fell even as Chinese consumer inflation rose more than expected, suggesting demand has stayed strong in the world’s number-two economy.

The Nikkei Stock Average dropped 3.8%, reversing a 7.7% jump from the previous day that had been its biggest daily gain in nearly seven years.

Asian shares elsewhere fell too, including the Shanghai Composite Index which declined by 0.9%.

Chinese shares came off their morning lows, after official data showed China’s consumer inflation accelerating in August, rising 2% from a year earlier, compared with a 1.6% rise in July. Economists had expected a 1.9% gain.

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:

 

Upcoming Economic Events that you should be monitoring:

Friday, September 11, 2015

Government Bond Auctions

Date Time Country

Sep 10 11:00 Sweden Sek 0.5bn 1% Jun 2025 I/L bonds

Sep 10 19:00 US USD 13bn 30-year bond auction

Sep 10 11:00 Ireland Holds bond auction

Sep 10 11:10 Italy Auctions BTPs/CCTeus

Sep 16 11:03 Sweden Holds bond auction

Sep 16 11:30 Germany Eur 2bn 2.5% Aug 2046 Bund

Sep 16 11:30 UK Auctions 2% 2025 Gilt

Sep 17 10:30 Spain Auctions Bonos/Obligaciones

Sep 17 10:50 France Auctions BTANs

Sep 17 11:50 France Auctions OATi

Sep 17 19:00 US Holds 10-year TIPS auction

Sep 21 12:00 Belgium Auctions OLOs