USD/JPY Fundamental Analysis – August 14, 2015 – Forecast

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Published: Aug 13, 2015, 04:03 UTC

Analysis and Recommendation: The USD/JPY added 22 points as the greenback recovered after China moved to keep the yuan stable and the Fed said that short

Analysis and Recommendation:

The USD/JPY added 22 points as the greenback recovered after China moved to keep the yuan stable and the Fed said that short term currency adjustments do not affect their process or change their view on the US economic recovery. The yen is trading at 124.43.

The dollar fell against the euro and other currencies on Wednesday on speculation that the US Federal Reserve will delay hiking interest rates following China’s devaluation of the yuan. “The dollar took it on the chin,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Beijing on Tuesday surprised global financial markets by devaluing its currency, the yuan, by nearly two per cent against the US dollar. A second cut on Wednesday brought reductions this week in the yuan to 3.5 percent against the dollar.

The dollar rebounded after comments from the Fed indicated that short term currency movements would not affect their decisions and that they do not react to the currency markets. After Lehman blew up, the US debased currency through QE. That led to the US dollar depreciating vis-a-vis other currencies, including yuan.

Japan’s Shinzo Abe devalued the yen to revive the economy, and so did European Central Bank’s Mario Draghi to revive the Eurozone, flooding the market with liquidity .

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 up to the data analysis and information in our weekly reports.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Jul)	53.5		55.2
GBP	RICS House Price Balance (Jul)	44%	42%	40%
AUD	RBA Assist Gov Kent Speaks

Upcoming Economic Events that you should be monitoring:

Friday, August 14, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Core Retail Sales (QoQ)		0.7%	2.9%
EUR	German GDP (QoQ) (Q2)		0.5%	0.3%
EUR	Core CPI (YoY) (Jul)		1.0%	1.0%
EUR	CPI (MoM) (Jul)		-0.6%	0.0%
EUR	GDP (QoQ) (Q2)		0.4%	0.4%
USD	PPI (MoM) (Jul)		0.1%	0.4%
CAD	Manufacturing Sales (MoM) (Jun)		2.1%	0.1%
USD	Industrial Production (MoM) (Jul)		0.3%	0.3%
USD	Michigan Consumer Sentiment (Aug)		93.5	93.1