Analysis and Recommendation: The USD/JPY continues to climb trading at 83.88 headed toward recent record highs. The Bank of Japan continues to dump
The USD/JPY continues to climb trading at 83.88 headed toward recent record highs. The Bank of Japan continues to dump additional stimulus in the economy as elections loom closer. Japan’s Liberal Democratic Party, led by former Prime Minister Shinzo Abe, is expected to topple the existing regime in this weekend’s general election. Mr. Abe is seen as an advocate for more central bank asset purchases in a bid to revive an economy that’s sharply deteriorated since last year’s earthquake and tsunami.
The USD maintained its recent gains and approached the 2012 high at 84.18. Fundamentals are likely to provide for some movement in JPY over the next 24 hours, however, political and BoJ risk remain the key drivers of movement ahead of this weekend’s election. JPY has declined 8.0% since early October, falling at a slightly slower pace than the 10.7% depreciation seen over the course of February and early March
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.
Economic Data December 14, 2012 actual v. forecast
Date |
|
Currency |
|
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
Dec. 14 |
|
CNY |
|
|
Chinese HSBC Manufacturing PMI |
50.90 |
|
|
|
50.50 |
|
|
|
|
JPY |
|
|
Industrial Production (MoM) |
1.6% |
|
1.8% |
|
1.8% |
|
|
|
|
SGD |
|
|
Singaporean Retail Sales (YoY) |
-1.0% |
|
-1.5% |
|
2.6% |
||
|
|
INR |
|
|
Indian WPI (YoY) |
7.24% |
|
7.57% |
|
7.45% |
|
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Dec. 17 |
13:30 |
USD |
-0.5 |
-5.2 |
|
|
14:00 |
USD |
|
3.3B |
Government Bond Auction
Date Time Country
Dec 17 10:10 Norway
Dec 17 18:00 US
Dec 18 01:30 Japan
Dec 18 09:30 Spain
Dec 18 10:10 Greece
Dec 18 18:00 US
Dec 19 18:00 US
Dec 20 10:30 UK
Dec 20 16:30 Italy
Dec 20 18:00 US
Dec 21 16:30 Italy