USD/JPY Fundamental Analysis October 27, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendation: The USD/JPY tumbled by 20 points as the US dollar weakened in the morning session after soaring on Thursday after positive US

USD/JPY Fundamental Analysis October 27, 2014 Forecast

Analysis and Recommendation:

The USD/JPY tumbled by 20 points as the US dollar weakened in the morning session after soaring on Thursday after positive US unemployment claims report on Thursday. The pair soared in late trading to well above the 108 level and is holding at 108.07 at this writing. The Japanese yen gained for the first time in seven days against the dollar after news said that a patient in New York City tested positive for Ebola, boosting demand for haven assets. Japan’s currency advanced at least 0.2 percent versus all of its 16 major counterparts after the New York Times said a further test will be conducted to confirm the initial finding without saying where it got its information. U.S. Treasuries gained, while futures on the Standard & Poor’s 500 Index extended declines.

While the dollar has regained more than half the ground it has lost since Oct. 3, when it hit a six-year high just below ¥110. David Woo, head of global rates and currencies research at Bank of America Merrill Lynch, said he expects the dollar to end the year around ¥108, its current level.

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
NZD	Trade Balance (MoM)	-1,350M	-700M	-472M
NZD	Trade Balance (YoY)	650M	1,510M	2,020M

Upcoming Economic Events that you should be monitoring:

Cur.		Event	Actual	Forecast	Previous
	Holiday	New Zealand – Labour Day
EUR		German Business Expect		98.4	99.3
EUR		German Current Assess		109.5	110.5
EUR		German Ifo Climate Ind		104.1	104.7
USD		Pending Home Sales		0.3%	-1.0%