EUR/JPY Fundamental Forecast – February 17, 2016

Analysis and Recommendations:

The EUR/JPY added 17 points to reach 128.03 as the yen continued to weaken on lackluster data and a falling economy. Shinzo Abe, Japan’s prime minister, held an emergency meeting with Haruhiko Kuroda, the governor of the Bank of Japan (BoJ), on Friday to discuss recent events. The BoJ slashed interest rates below zero for the first time last month.

“There’s a high chance that the BoJ may take additional easing at the next meeting in March,” said Masamichi Adachi, an economist at JP Morgan. “The downside risks to the BoJ’s outlook on growth and inflation are increasing.”

In Japan, the Bank of Japan started implementing negative interest rates on Tuesday. The benchmark interbank lending rate fell to zero percent but not to negative levels partly because some banks have not fixed their system to deal with negative rates.

FxEmpire provides in-depth analysis for each asset 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 up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auctions

Date Time and Country

Feb 17 11:03 Sweden Holds bond auction

Feb 17 11:05 Norway Holds bond auction

Feb 17 11:30 Germany Euro 5bn 0.5% Feb 2026 Bund

Feb 17 11:30 UK New Jul 2026 Gilt auction

Feb 18 10:30 Spain Holds bond auction

Feb 18 11:50 France Holds bond auction

Feb 18 17:20 Sweden Details of I/L auction on Feb 25

Feb 19 11:10 Italy Details of BTP€i/Zero-coupon auction