USD/JPY Fundamental Analysis October 20, 2014 Forecast

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Updated: Aug 25, 2015, 01:00 UTC

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

USD/JPY Fundamental Analysis October 20, 2014 Forecast

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 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.