Analysis and Recommendation: The USD/JPY is flat this morning as the greenback remained steady ahead of the FOMC statement due later in the US session.
Analysis and Recommendation:
The USD/JPY is flat this morning as the greenback remained steady ahead of the FOMC statement due later in the US session. There seemed to be little reaction to the surge in industrial production which skyrocketed well above forecast and offsetting last month’s dismal results. The pair is holding at 108.15 as trader turn their focus to the Bank of Japan policy decision due tomorrow. Japan’s industrial production rose at its fastest pace since the beginning of the year in September, data showed on Wednesday. Industrial production rose 2.7 percent on month, above expectations for a 2.2 percent rise and up from a 1.9 percent decline in August, marking the fastest expansion since January. Following the release the Japanese government said that industrial production is “seesawing.”
In April, the government raised the consumption tax to 8 percent from 5 percent to rein in the country’s budget-to-GDP ratio. It was the first tax hike in 17 years. However, some politicians want this plan to be delayed. On Monday, a top Japanese government official said, on condition of anonymity, that Prime Minister Shinzo Abe should delay a second tax hike until April 2017, Reuters reported.
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 |
|||
|
JPY |
Industrial Production |
2.7% |
2.2% |
-1.9% |
|
|
|
NZD |
Business Confidence |
26.5% |
|
13.4% |
|
|
|
CAD |
RMPI (MoM) (Sep) |
|
-1.0% |
-2.2% |
|
|
|
USD |
FOMC Statement |
|
|
|
|
|
|
USD |
Fed Funds Target Rate |
|
0.25% |
0.25% |
Upcoming Economic Events that you should be monitoring:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
NZD |
RBNZ Rate Statement |
|
|
|
|
|
|
AUD |
HIA New Home Sales |
|
|
3.3% |
|
|
|
GBP |
Nationwide HPI (MoM) |
|
0.3% |
-0.2% |
|
|
|
GBP |
MPC Member Cunliffe |
|
|
|
|
|
|
EUR |
Spanish GDP (QoQ) |
|
0.5% |
0.6% |
|
|
|
EUR |
German Unemployment |
|
5K |
13K |
|
|
|
EUR |
German Unemployment |
|
6.7% |
6.7% |
|
|
|
USD |
GDP (QoQ) (Q3) |
|
3.0% |
4.6% |
|
|
|
USD |
GDP Price Index (QoQ) |
|
2.0% |
2.1% |
|
|
|
USD |
Initial Jobless Claims |
|
283K |
283K |
|
|
|
USD |
Fed Chair Yellen |
|
|
|
|
|
|
EUR |
German CPI (MoM) |
|
-0.1% |
0.0% |
Government Bond Auction
Date Time Country Auction
Oct 29 10:03 Sweden Sek 3.5bn 5.0% Dec 2020 bonds
Oct 29 10:30 Germany Eur 4.0bn Aug 2024 Bund auction
Oct 29 15:30 US Usd 15bn 2Y FRNs
Oct 29 17:00 US Usd 35bn 5Y Notes
Oct 30 10:10 Italy BTP/CCTeu auctions
Oct 30 17:00 US Usd 29bn 7Y Notes
Nov 03 10:00 Norway T-bill auction
Nov 04 10:15 Austria RAGB auction
Nov 04 10:30 Belgium 3 & 6M T-bill auction (Feb & Apr 2015)
Nov 04 10:30 UK Auctions 0.5% 2050 I/L Gilt
Nov 05 10:30 Germany Eur 4.0bn Oct 2019 Bobl auction
Nov 06 09:30 Spain Bono/Obligacion auction
Nov 06 10:03 Sweden I/L bond auction
Nov 06 11:00 Norway Announces details of bond auction on Nov 11
Nov 07 16:30 Italy Announces details of BOT auction on Nov 12