Analysis and Recommendation: The USD/JPY is trading at 106.35 up by 2 points on low volume and little data. Markets are in a wait and see mode ahead of
The USD/JPY is trading at 106.35 up by 2 points on low volume and little data. Markets are in a wait and see mode ahead of Janet Yellen’s speech and a slew of US data. The Department of Labor reported that initial US jobless claims for the week ending October 11 fell to 264,000, the lowest level since 2000.
Then the Federal Reserve said US industrial production rose a robust 1.0 percent in September, recovering from an unexpected drop in August. The two reports helped counteract disappointing data earlier in the week, including a poor September retail sales report that pushed the dollar lower Wednesday. The move Wednesday came as traders perceived a higher chance the Federal Reserve would wait longer before raising benchmark interest rates. “Any delay in expected monetary normalization by the Fed will indeed hurt the dollar,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange. “However, the dollar is likely to remain underpinned by the view that America’s economy remains the ‘cleanest shirt in the hamper’.”
St. Louis Fed Bank President James Bullard said the central bank should consider delaying the end of its bond buying to halt the decline in inflation expectations. Reports yesterday showed production at U.S. factories rebounded, claims for jobless benefits fell to a 14-year low and households held the most optimistic views in two years, signs the world’s largest economy is overcoming a global slowdown.
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:
There are no data releases scheduled Friday morning for the Asian markets. Market focus will be on Janet Yellen’s speech later today.
Upcoming Economic Events that you should be monitoring:
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Holiday |
Kenya – Mashujaa Day |
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EUR |
German PPI (MoM) |
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CAD |
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Government Bond Auction
Date Time Country Auction
Oct 20 12:00 Belgium OLO Auction
Oct 20 12:00 Slovakia Bond auction (for decision)
Oct 21 10:30 Spain 3 & 9M T-bill auction
Oct 21 11:00 Norway Bond auction
Oct 21 11:00 UK Auctions 2.75% 2024 Gilt
Oct 22 11:30 Germany Eur 2.0bn Aug 2046 Bund auction
Oct 23 11:03 Sweden I/L bond auction
Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30 & 29
Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28
Oct 23 19:00 US 30Y TIPS auction
Oct 24 17:30 Italy Announces details of BOT auction on Oct 29