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USD/JPY Fundamental Analysis October 30, 2014 Forecast

By:
Barry Norman
Updated: Aug 25, 2015, 07:00 UTC

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.

USD/JPY Fundamental Analysis October 30, 2014 Forecast
USD/JPY Fundamental Analysis October 30, 2014 Forecast
USD/JPY Fundamental Analysis October 30, 2014 Forecast

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%

 

 

USDJPY(60 minutes)20141029052906

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

 

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