USD/JPY Fundamental Analysis – November 6, 2015 – Forecast

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Published: Nov 5, 2015, 04:44 GMT+00:00

Analysis and Recommendation: The USD/JPY dipped 11 points to 121.45 after the Bank of Japan meeting minutes release this morning. Sluggish growth in

Analysis and Recommendation:

The USD/JPY dipped 11 points to 121.45 after the Bank of Japan meeting minutes release this morning. Sluggish growth in exports and weak household spending are expected to weigh on the central bank in the months ahead. BoJ Governor Haruhiko Kuroda extended the time required to meet the inflation target of 2%, blaming the bleak increase in oil prices for deflationary effects.

The central bank last increased its quantitative easing program in October 2014 to the current levels of 80 trillion yen. The yen experienced positive pressures as a safe haven currency as geopolitical tensions increased between China and Japan earlier last week.

Federal Reserve Chair Janet Yellen told Congress that the Fed could raise its key interest rate at its next meeting in December. It would the first rate hike — known as “liftoff” — in almost a decade.

Yellen expressed optimism that the U.S. economy is getting stronger.

She cited improvements in the job market, consumer spending and also said the things keeping inflation low — cheap oil prices — are temporary.

“At this point, I see the U.S. economy as performing well,” Yellen told the House Financial Services Committee.

Even the global economy is holding up better than many thought.

The Fed held off raising rates off their historic lows near 0% in September because of the global economic slowdown that sent the stock market plunging in August. There have been some signs of stability since the summer.

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:

Cur.	Event	Actual	Forecast	Previous
AUD	RBA Governor Stevens Speaks
JPY	Monetary Policy Meeting Minutes
USD	FOMC Member Stanley Fischer
AUD	RBA Assist Gov Lowe Speaks

Upcoming Economic Events that you should be monitoring:

Friday, November 6, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Monetary Policy Meeting Minutes
JPY	BoJ Governor Kuroda Speaks
EUR	German Industrial Production (MoM)		0.5%	-1.2%
GBP	Halifax House Price Index (MoM)		-0.7%	-0.9%
GBP	Industrial Production (MoM) (Sep)		-0.1%	1.0%
GBP	Manufacturing Production (MoM)		0.4%	0.5%
GBP	Trade Balance (Sep)		-10.60B	-11.15B
USD	FOMC Member Bullard Speaks
USD	Average Hourly Earnings (MoM) (Oct)		0.2%	0.0%
USD	Nonfarm Payrolls (Oct)		180K	142K
USD	Private Nonfarm Payrolls (Oct)		165K	118K
USD	Unemployment Rate (Oct)		5.1%	5.1%
GBP	NIESR GDP Estimate		0.6%	0.5%
USD	Baker Hughes U.S. Rig Count			578