Analysis and Recommendation: The USD/JPY has broken above 85.84 for the first time since 2010 as the newly elected Prime Minister says that the government
The USD/JPY has broken above 85.84 for the first time since 2010 as the newly elected Prime Minister says that the government will do everything in its power to stimulate the economy regardless of how weak the JPY becomes. This worries traders as Japan is known for deflation, even though Prime Minister Abe wants to set a new inflation goal over 2%, while the BoJ has it set at 0-1% which they still have not obtained.
Prime Minister Shinzo Abe has already made comments on setting an inflation target of 2%, maintaining dollar-yen level in the ¥85-¥90 range, and appointing a Bank of Japan Governor whose views were aligned to those of the government.
Also, Japan’s newly-elected government won’t abide by a ceiling on bond issuances when it decides on the size of an upcoming supplementary budget, aimed at providing a stimulus to the ailing economy, Finance Minister Taro Aso said, according to media reports.
Minutes from the Nov. 19-20 meeting of the Japanese central bank showed some monetary-policy-committee members saying measures should be adjusted to better drive the forex market.
Across the Pacific, President Obama assured markets that US lawmakers would continue their negotiations beginning today and would reach a deal before the Jan 1, 2013 deadline.
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 27, 2012 actual v. forecast
Date |
Time |
|
Currency |
|
Importance |
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
Dec. 27 |
00:00 |
|
USD |
|
|
Richmond Manufacturing Index |
5 |
|
12 |
|
9 |
|
||
|
06:00 |
|
KRW |
|
|
South Korean manufacturing BSI |
75.00 |
|
|
|
69.00 |
|
||
|
12:30 |
|
THB |
|
|
Thai Industrial Production (YoY) |
83.3% |
|
68.5% |
|
36.0% |
|||
|
14:00 |
|
JPY |
|
|
Housing Starts (YoY) |
10.3% |
|
10.0% |
|
25.2% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
As the year end approaches markets are very thin and there is very little eco data available
Date |
Time |
|
Currency |
|
Importance |
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
Dec. 28 |
01:00 |
|
PHP |
|
|
Philippines Trade Balance |
|
|
|
|
-483.0M |
|
||
|
01:30 |
|
JPY |
|
|
Average Cash Earnings (YoY) |
|
|
-0.4% |
|
-0.4% |
|||
|
01:30 |
|
KRW |
|
|
South Korean Retail Sales (MoM) |
|
|
0.3% |
|
-0.8% |
|
||
|
04:30 |
|
THB |
|
|
Thai Industrial Production (YoY) |
|
|
28.3% |
|
36.1% |
|
||
|
07:30 |
|
THB |
|
|
Thai Trade Balance |
|
|
|
|
-0.10B |
|
||
|
07:30 |
|
THB |
|
|
Thai Private Consumption (MoM) |
|
|
|
|
0.4% |
|
||
|
07:30 |
|
THB |
|
|
Thai Private Investment |
|
|
|
|
0.90% |