Analysis and Recommendation: The USD/JPY added 11pts this morning to trade at 84.00. Markets reacted harshly yesterday after the elections in Japan on
The USD/JPY added 11pts this morning to trade at 84.00. Markets reacted harshly yesterday after the elections in Japan on Sunday showed to Shizo Abe’s party won a landslide victory giving them enough seats in the lower house to overrule the upper house, which means that Abe can push through any legislation he wants to help the ailing Japanese economy. Although the LDP won a huge number of seats the election was not an endorsement of this platform or party but a No Vote against Prime Minister Noda.
USDJPY reached a new 2012 high just below 84.50 as market participants reacted to Abe’s plans to introduce a 2.0% inflation target for the BoJ while also calling on policymakers to consider the election result at this week’s central bank meeting. According to the CFTC, investors have continued to add to their short JPY position, which now stands at -$14.3bn after having nearly doubled over the past month
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 18, 2012 actual v. forecast
Date |
|
Currency |
|
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
|
|
CNY |
|
|
China House Prices (MoM) |
-0.70% |
|
|
|
-1.10% |
|
|
|
|
CNY |
|
|
Chinese FDI |
-3.60% |
|
|
|
-3.45% |
|
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Dec. 19 |
13:30 |
USD |
0.875M |
0.868M |
|
|
13:30 |
USD |
0.870M |
0.894M |
|
|
21:45 |
NZD |
0.4% |
0.6% |
Government Bond Auction
Date Time Country
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