EUR/JPY Fundamental Analysis – September 2, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY added 16 points as the euro gained on the weak US dollar and better than expected Chinese PMI data.  China’s official PMI, released earlier in the day, slipped to 49.7 in August – the weakest level since August 2012 – down from 50 in July and in line with expectations. This is the first time the official PMI has fallen below 50 in six months, according to Nomura.

The official PMI is skewed towards state-owned enterprises and large companies, while the Caixin PMI focuses more on small and medium-sized firms.

With investors gripped by fear the global economy could be tripped by slowdown in China, even rises in U.S. debt yields rise on Monday following Fischer’s comments and spike in oil prices did not provide the dollar much of a boost.

The euro and Japanese yen posted monthly gains against the dollar on Monday as both currencies benefited from a global stock-market panic and concerns that the Federal Reserve might wait until the end of the year — or longer — to raise interest rates.

Some analysts were ready to brand the euro a “safe haven” currency after its performance against the dollar during last week’s global stock-market selloff. But Matt Weller, senior technical analyst at Forex.com, explained that the shared currency’s gains were the result of how the market was positioned going into the selloff.

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:

Wednesday, September 2, 2015

Government Bond Auctions

Date Time Country

Sep 01 09:15 Austria Eur 1.43bn; 1.2% Oct 2025 & 3.9% Jul 2020 RAGBs

Sep 02 09:03 Sweden Sek 2bn 3.5% Jun 2022, Sek 2bn 1.5% Nov 2023 bonds

Sep 02 09:30 Germany Eur 4bn 0.25% Oct 2020

Sep 02 09:30 UK New Gbp 3.75bn 1.5% Jan 2021 Gilt

Sep 03 08:30 Spain 1.15% Jul 2020, 1.8% Nov 2024 I/L, 2.15% Oct 2025, 5.15%

Sep 03 08:50 France 1.75% May 2023, 2.5% May 2030 OATs

Sep 03 N/A US Announces details of 3-year note on 08 Sep

Sep 03 N/A US Announces details of 10-year note on 09 Sep

Sep 08 09:30 UK Auctions 3.5% 2045 Gilt

Sep 08 15:30 Italy Announces details of BTP/CCTeu on 11 Sep

Sep 08 17:00 US Holds 3-year note auction

Sep 09 09:15 Norway Holds bond auction

Sep 09 09:30 Germany Eur 4bn Aug 2025 Bund

Sep 09 17:00 US Holds 10-year note auction

Sep 10 17:00 US Holds 30-year bond auction

Sep 10 09:10 Italy Auctions BTPs/CCTeus