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USD/JPY Fundamental Analysis – August 28, 2015 – Forecast

By:
Barry Norman
Published: Aug 27, 2015, 04:49 UTC

Analysis and Recommendation: The USD/JPY added 18 points to reach 120.10 as the pair moved back into its normal trading range.  In overseas trading

USD/JPY

usdjpy thursday bnsnla
Analysis and Recommendation:

The USD/JPY added 18 points to reach 120.10 as the pair moved back into its normal trading range.  In overseas trading overnight, the dollar briefly rose to near ¥120.40 after the People’s Bank of China announced additional monetary easing steps in a bid to shore up the economy and stock prices.

Even though the easing measures surprised market participants, an official at a currency broker said that “they did not fully dispel investor concerns about the Chinese economy.”

Reflecting lingering worries over China, the dollar was weak around ¥118.50 in early Tokyo trading. The dollar rose above ¥119 in midmorning trading but failed to extend gains since the upside of Tokyo stocks were limited.

The U.S. currency drew renewed demand and topped ¥119.80 in the afternoon thanks to a surge in Tokyo stock prices following a rebound in Shanghai equities, market sources said.

A risk-averse mood retreated somewhat thanks to a decision by the People’s Bank of China to reduce its key interest rate and ease bank reserve requirements, brokers said.

Undervalued exporters and other mainstay issues attracted a wave of buybacks in the Tokyo market.

Although the key indexes sank into negative territory in the morning session due to profit-taking, stocks soon wiped out the losses and accelerated their upswing in the afternoon, briefly pushing up the Nikkei average more than 600 points.

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

 

  AUD

 

Private New Capital Expenditure

-4.0%

-2.5%

-4.7%

   

 

usdjpy thur

Upcoming Economic Events that you should be monitoring:

Friday, August 28 2015

Cur.

 

Event

Actual

Forecast

Previous

 

  JPY

 

Household Spending (YoY) (Jul)

 

1.3%

-2.0%

 

 

  JPY

 

Household Spending (MoM) (Jul)

 

2.2%

-3.0%

 

 

  JPY

 

National Core CPI (YoY) (Jul)

 

-0.2%

0.1%

 

 

  JPY

 

Tokyo Core CPI (YoY) (Aug)

 

-0.2%

-0.1%

 

 

  JPY

 

Retail Sales (YoY) (Jul)

 

1.1%

0.9%

 

 

  CHF

 

GDP (YoY) (Q2)

 

0.9%

1.1%

 

 

  CHF

 

GDP (QoQ) (Q2)

 

-0.1%

-0.2%

 

 

  EUR

 

Spanish CPI (YoY) (Aug)  

 

-0.1%

0.1%

 

 

  EUR

 

Spanish HICP (YoY) (Aug)  

 

-0.2%

0.0%

 

 

  GBP

 

Business Investment (QoQ)

 

1.7%

2.0%

 

 

  GBP

 

GDP (QoQ) (Q2)  

 

0.7%

0.7%

 

 

  EUR

 

German CPI (MoM) (Aug)  

 

-0.1%

0.2%

 

 

  USD

 

Core PCE Price Index (MoM) (Jul)

 

0.1%

0.1%

 

 

  USD

 

Goods Trade Balance (Jul)

 

 

-62.26B

 

 

  USD

 

Personal Spending (MoM) (Jul)

 

0.4%

0.2%

 

 

  CAD

 

RMPI (MoM) (Jul)

 

-4.0%

0.0%

 

 

  USD

 

Michigan Consumer Expectations

 

 

83.8

   

Government Bond Auctions

Date Time Country

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep

 

 

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