The EUR/JPY gained 0.56% this week to close at 122.86 as the yen weakened as well as the euro. Bank of Japan chief Haruhiko Kuroda repeated a pledge that
The EUR/JPY gained 0.56% this week to close at 122.86 as the yen weakened as well as the euro. Bank of Japan chief Haruhiko Kuroda repeated a pledge that he was ready to unleash more stimulus measures to boost the sagging economy, comments that would normally dampen the currency.
Kuroda said the central bank “doesn’t have to wait” to launch more monetary easing as it gauges the impact of its negative-rate policy. But coming after weeks of such threats and promises from top officials, the markets appeared to have deaf ears.
Talk of more action increased after prominent Japanese academic Takatoshi Ito said on Thursday Japan’s central bank may expand monetary stimulus either in June or July. Ito has close ties to BOJ Governor Haruhiko Kuroda.
For his part, Kuroda said the BOJ won’t hesitate to take further easing steps if necessary, adding that there were still large downside risks to Japan’s economy. The BOJ introduced negative interest rates earlier this year, but that has had little impact on the yen or economic data.
“I foresee a major reversal on the yen,” said Juan Perez, currency strategist at Tempus Consulting in Washington, adding that he believes the BOJ will act aggressively at its next policy meeting in June.
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:
Cur. | Event | Actual | Forecast | Previous | ||||
Tuesday, May 17, 2016 | ||||||||
GBP | CPI (YoY) (Apr) | 0.5% | 0.5% | |||||
USD | Building Permits (Apr) | 1.130M | 1.076M | |||||
USD | Core CPI (MoM) (Apr) | 0.2% | 0.1% | |||||
Wednesday, May 18, 2016 | ||||||||
JPY | GDP (QoQ) (Q1) | 0.1% | -0.3% | |||||
GBP | Average Earnings Index +Bonus (Mar) | 1.7% | 1.8% | |||||
GBP | Claimant Count Change (Apr) | 4.0K | 6.7K | |||||
EUR | CPI (YoY) (Apr) | -0.2% | -0.2% | |||||
USD | Crude Oil Inventories | -3.410M | ||||||
Thursday, May 19, 2016 | ||||||||
AUD | Employment Change (Apr) | 12.5K | 26.1K | |||||
GBP | Retail Sales (MoM) (Apr) | 0.5% | -1.3% | |||||
USD | Philadelphia Fed Manufacturing Index | 3.5 | -1.6 | |||||
Friday, May 20, 2016 | ||||||||
CAD | Core CPI (MoM) (Apr) | 0.1% | 0.7% | |||||
CAD | Core Retail Sales (MoM) (Mar) | -0.5% | 0.2% | |||||
USD | Existing Home Sales (Apr) | 5.40M | 5.33M |
Upcoming Government Bond Auctions
Date Time Country
May 13 12:00 Iceland Holds bond auction
May 18 11:30 Germany Eur 4bn Feb 2026 Bund
May 18 17:20 Sweden Announces details of bond auction on May 25
May 19 10:30 Spain Holds bond auction
May 19 11:03 Sweden Hold bond auction
May 19 11:50 France Holds bond auction
May 20 11:03 Sweden Sek 1.992bn 0.5% Jun 2017 I/L bond