USD/JPY Fundamental Analysis – November 3, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY added 30 points to trade at 120.32 as the US dollar fell against most of its crosses. The Japanese yen continues to weaken as data remains weak and the BoJ revised down the overall outlook but offered no assistance. This week’s consumer confidence report could show that consumers have stopped spending entirely as wage growth is no existent.  Mixed Chinese data is keeping Asian markets on edge.

The dollar lost 0.2 percent to 120.435 yen as the fall in Tokyo shares cooled risk appetite and favoured the safe-haven Japanese currency. The dollar was already on the defensive after the BOJ on Friday wrong-footed investors who had wagered on the Japanese central bank easing policy and lifting the greenback.

China’s factory activity fell for an eighth straight month in October, the Caixin purchasing manager’s index (PMI) showed, fuelling fears the economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.

The Caixin figures followed Sunday’s official survey, which showed activity in China’s manufacturing sector unexpectedly contracted in October for a third straight 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.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, November 3, 2015

Government Bond Auctions

Date Time Country

Nov 03 10:10 Austria Holds RAGB bond sale

Nov 04 15:30 Sweden Announces details of Bond on 11 Nov

Nov 04 N/A Holland Announces details of Bond on 10 Nov

Nov 05 09:30 Spain Auctions Bonos

Nov 05 09:50 France Auctions OATs

Nov 05 10:03 Sweden Holds I/L bond auction