USD/JPY Fundamental Analysis – August 6, 2015 – Forecast

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Published: Aug 5, 2015, 04:15 UTC

Analysis and Recommendation: The USD/JPY is up 5 points as the greenback rallied after comments from Fed member Lockhart. Investors regard Mr. Lockhart as

USD/JPY Fundamental Analysis – August 6, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY is up 5 points as the greenback rallied after comments from Fed member Lockhart. Investors regard Mr. Lockhart as a centrist among Fed officials, so his words sent a strong signal that the Fed is moving closer to raising interest rates at its September meeting. Investors anticipate that a strong U.S. jobs report for July, which will be released Friday, will move the Fed ever closer to raising interest rates from near zero. Mr. Lockhart mentioned that U.S. employment data have generated “positive signals.” Economists forecast that the U.S. added 215,000 jobs last month.

The dollar later slipped below ¥124 again in line with its weakness against the Australian dollar, which drew demand after the Australian central bank decided to leave its key interest rate unchanged at a record low of 2.0 percent at its policy-setting meeting.

After European players joined trading in late hours, the dollar came under renewed selling pressure and briefly fell below ¥123.90. Still, the dollar avoided a further decline as it attracted buying on dips at levels around ¥123.80, market sources said.

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
CNY		Caixin Services PMI (Jul)	53.8	52.2	51.8

Upcoming Economic Events that you should be monitoring:

Thursday, August 6, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Employment Change (Jul)		15.0K	7.3K
GBP	Manufacturing Production (Jun)		0.2%	-0.6%
GBP	BoE Inflation Report
GBP	Interest Rate Decision (Aug)		0.50%	0.50%
GBP	BoE MPC Meeting Minutes
GBP	BoE Gov Carney Speaks