USD/JPY Fundamental Analysis January 1, 2013, Forecast

Analysis and Recommendation:

The USD/JPY gained a few pips to trade at 85.96 in Asian trading on the last day of the year. With the US unable to reach agreements ahead of the midnight deadline, US markets are beginning to tumble. The dollar continues to gain as traders are in risk off mode, bumping up the greenback and gold in early trading. Markets are only open a partial day ahead of the New Year’s holiday.

Traders are pessimistic a deal could be reached to avoid the fiscal cliff of tax hikes and spending cuts before a January 1 deadline, with negotiations appearing deadlocked. Previously there was greater optimism on the fiscal cliff, now their expectations have been lowered. Analysts fear that if a deal is not reached to prevent the US going over the fiscal cliff, the American economy could be tipped into recession. Despite overnight negotiations, US Democrats and Republicans said little progress appeared to have been made.

Global market focus will remain statements and press from the US over the next hours as lawmakers are running out of time.

I would like to take this time to wish my readers a happy and healthy New Year and a year full of successful trading.

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 31, 2012 actual v. forecast

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Upcoming Government Bond

Date Time Country 

Thursday, January 5: France will auction an estimated €7-8 billion ($9.1-10.4 billion) in 10-year and other long-term bonds 

Tuesday, January 10: Austria will auction €1.3 billion ($1.7 billion) in 5- and 10-year bonds

Thursday, January 12: Spanish 3- and 5-year bond auction

Friday, January 13: Italy will auction medium-long term bonds

Thursday, January 19: France will auction 5-year bonds

Thursday, January 19: Spanish 10-, 15-, and 30-year bond auction

Thursday, January 26: Italian long-term bond auction

Monday, January 30: Italian medium-long term bond auction

Monday, January 30: Belgian bond auction