EUR/JPY Fundamental Analysis – September 30, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY dipped 12 points to trade at 134.73 as the Japanese yen gained a bit on words from the Bank of Japan.  Bank of Japan Gov. Haruhiko Kuroda on Monday added pressure on Japanese businesses to raise wages more aggressively, saying the central bank would otherwise fail to hit its key target of 2% inflation.

In a speech to executives, Mr. Kuroda betrayed frustration at one of the most vexing problems facing Japan’s economy: getting businesses to put their enormous cash piles to more-productive uses.

“Corporate earnings have improved and the labor market is in full employment, but there hasn’t necessarily been wage growth that matches those situations,” Mr. Kuroda said at a news conference later.

Higher wages is a key element in what Mr. Kuroda has dubbed a “virtuous cycle” in which higher corporate profits lead to rising pay, which in turn fuels the stronger domestic consumption needed for Japan to win a decisive victory in its long battle against deflation.

Mr. Abe last week shifted his focus back to the economy after a divisive, months long battle over security legislation. He pledged to grow the economy by around a fifth in nominal terms and tackle structural impediments to growth. But he offered few details of how this would be achieved or when, and economists expressed skepticism.

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:

Only Lower Level Data Today

 

Upcoming Economic Events that you should be monitoring:

Wednesday, September 30, 2015

Government Bond Auctions

Date Time Country

Sep 28 11:30 Germany Eur 1.5bn 12M (Sep 2016) Bubills

Sep 29 11:10 Italy Auctions BTPs/CCTeus

Sep 30 11:03 Sweden Holds bond auction

Oct 01 10:30 Spain Auctions Bonos/Obligaciones

Oct 01 10:50 France Auctions OATs

Oct 01 11:30 UK 1.5% 2021 Gilt auction

Oct 06 11:10 Austria Holds RAGB bond sale

Oct 06 11:30 UK 4.5% 2034 Gilt auction

Oct 06 19:00 US Holds 3-year note auction

Oct 07 11:30 Germany Eur 4bn Aug 2025 Bund

Oct 07 16:30 Sweden Announces details of auction on 14 Aug

Oct 07 19:00 US Holds 10-year note auction

Oct 08 11:03 Sweden Holds I/L bond auction

Oct 08 17:30 Italy Announces details of BTP/CCTeu on 13 Oct

Oct 08 19:00 US Holds 30-year bond auction