USD/JPY Fundamental Analysis October 16, 2014 Forecast

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Updated: Aug 25, 2015, 00:00 UTC

Analysis and Recommendation: The USD/JPY added 4 points to trade at 107.10 ahead of Japanese industrial production numbers due later today. The BOJ puts

USD/JPY Fundamental Analysis October 16, 2014 Forecast

Analysis and Recommendation:

The USD/JPY added 4 points to trade at 107.10 ahead of Japanese industrial production numbers due later today. The BOJ puts the economy’s potential growth rate around 0.5 percent and Hayakawa said he’ll be watching to see whether the bank cuts that estimate when it gives its outlook report on Oct. 31. The bank will probably slash its forecast for the economy’s expansion for the current fiscal year through March while maintaining its inflation projection. Growing public criticism of the yen’s recent weakness means the BOJ can’t stick to its current plan to reach 2 percent inflation, he said.

Bank of Japan Governor Haruhiko Kuroda thinks a weak yen is a plus for the economy as long as currency moves reflect fundamentals, a senior Bank of Japan official said on Wednesday. A weak yen is a positive for exporters but can be a negative factor for household incomes and companies that import goods, BOJ Executive Director Masayoshi Amamiya said in parliament.

The dollar gained as signs of global weakness drove investors toward the relative strength of the U.S. economy. The dollar index has gained more 6.5 percent since the end of June as signs of recovery in the world’s biggest economy contrast with data signaling weakness in China, Japan and the euro zone. China reported the slowest consumer inflation in more than four years today, while a measure of producer prices, which hasn’t shown an increase since January 2012, dropped more than estimated.

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 actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
AUD	Consumer Sentiment	0.9%		-4.6%
CNY	CPI (MoM) (Sep)	0.5%	0.4%	0.2%
CNY	CPI (YoY) (Sep)	1.6%	1.7%	2.0%
CNY	PPI (YoY) (Sep)	-1.8%	-1.6%	-1.2%
JPY	Industrial Production		-1.5%	-1.5%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Sep)			56.5
EUR	Core CPI (YoY) (Sep)		0.7%	0.7%
EUR	CPI (MoM) (Sep)		0.4%	0.1%
EUR	CPI (YoY) (Sep)		0.3%	0.3%
USD	Initial Jobless Claims		290K	287K
CAD	Manufacturing Sales		-1.6%	2.5%
USD	Industrial Production		0.4%	-0.1%
USD	Phil Fed Manufacturing		20.0	22.5