Weekly Analysis and Recommendations: The EUR/JPY gained 25 points on Friday to end the week at 128.26 as the euro tumbled this week but the yen eased also
The EUR/JPY gained 25 points on Friday to end the week at 128.26 as the euro tumbled this week but the yen eased also dipped as safe haven trades ease. Bank of Japan’s Kuroda comments came a day after European Central Bank chief Mario Draghi said the bank would need to review its policy in March, which was read by markets as a promise of more easing.
The euro fell below $1.08 to the dollar for the second time in as many days, nearing a two-week low. The euro zone single currency was last down 0.75 percent at $1.0790.
The rebound in global equity markets also played a major role in the dollar’s rise against the yen and euro, said Shaun Osborne, chief currency strategist at Scotiabank in Toronto. World stocks recorded their biggest rise in a month and the S&P 500 followed the lead, rising 1.7 percent.
On Friday, the greenback traded higher against the yen after a sharp recovery by Tokyo stocks.
The Nikkei Stock Average closed up 5.9% at 16,958.53 after falling for two days. Still, the benchmark index has skidded around 11% since the turn of the year.
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.
Major Economic Events for the week:
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Cur. |
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Event |
Actual |
Forecast |
Previous |
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Monday, January 25, 2016 |
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EUR |
German Ifo Business Climate Index |
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108.4 |
108.7 |
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Tuesday, January 26, 2016 |
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Holiday |
Australia – Australia Day |
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USD |
CB Consumer Confidence (Jan) |
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96.5 |
96.5 |
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Wednesday, January 27, 2016 |
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AUD |
CPI (QoQ) (Q4) |
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0.3% |
0.5% |
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USD |
New Home Sales (Dec) |
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500K |
490K |
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USD |
Crude Oil Inventories |
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3.979M |
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Thursday, January 28, 2016 |
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NZD |
Interest Rate Decision |
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2.50% |
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GBP |
GDP (YoY) (Q4) |
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1.9% |
2.1% |
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GBP |
GDP (QoQ) (Q4) |
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0.5% |
0.4% |
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USD |
Core Durable Goods Orders (MoM) |
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-0.2% |
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USD |
Pending Home Sales (MoM) (Dec) |
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0.7% |
-0.9% |
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Friday, January 29, 2016 |
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EUR |
CPI (YoY) (Jan) |
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0.4% |
0.2% |
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USD |
GDP (QoQ) (Q4) |
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0.8% |
2.0% |
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CAD |
GDP (MoM) (Nov) |
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0.2% |
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Upcoming Government Bond Auctions
Date Time Country
Jan 25 11:30 Germany EUR 1.5bn Jan 2017 Bubill
Jan 25 13:00 Norway Details of bond auction on Jan 27
Jan 25 17:20 Italy Details of BTP/CCTeus on 28 Jan
Jan 26 11:10 Italy Holds CTZ/linker bond auction
Jan 26 n/a US Holds 2-year note auction
Jan 27 11:05 Norway Holds bond auction
Jan 27 11:30 Germany EUR 1bn 2.5% Aug 2046 Bund
Jan 27 17:20 Sweden Details of bond auction on 03 Feb
Jan 27 n/a US Holds 2-year FRN auction
Jan 27 n/a US Holds 5-year note auction
Jan 28 11:03 Sweden Holds I/L bond auction
Jan 28 11:10 Italy Holds BTP/CCTeus auction
Jan 28 n/a US Holds 7-year note auction
Feb 02 n/a UK Details of Gilt auctions on Feb 09 & 11