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USD/JPY Fundamental Analysis October 8, 2014 Forecast

By:
Barry Norman
Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendation: The USD/JPY  gained 39 points as the dollar recovered after yesterday’s decline. Traders sold off dollars on Monday after it

USD/JPY Fundamental Analysis October 8, 2014 Forecast

USD/JPY Fundamental Analysis October 8, 2014 Forecast
USD/JPY Fundamental Analysis October 8, 2014 Forecast
Analysis and Recommendation:

The USD/JPY  gained 39 points as the dollar recovered after yesterday’s decline. Traders sold off dollars on Monday after it soared when the nonfarm payroll report printed much better than expected. The USDJPY is trading at 109.18. Japan’s Finance Minister said the yen, which struck a six-year low against the greenback last week, was not particularly weak, while Prime Minister Shinzo Abe said the currency’s decline was both good and bad for the economy. Their comments were the clearest signal given so far that Japan’s policy makers are not overly concerned by their weak currency, though some business lobbies are unhappy with the rising cost of imported raw materials.

 Aso told a key economic panel last week that the yen at 108 to 109 against the dollar “was not particularly weak”, as the currency had merely returned to levels seen before the global financial crisis, according to the minutes of the meeting released on Monday.

 Abe also sounded equivocal when he was asked in parliament on Monday how excessive yen falls could affect the economy. The premier said he was mindful of the pain a weak yen is inflicting on small firms and people living in regional areas who are more vulnerable to rising gasoline prices. But he added that there are benefits to a weak yen.

BOJ Governor Haruhiko Kuroda will appear in parliament before the upper house budget committee on the later today a parliamentary source said. This is a rare case in which the BOJ governor appears at the parliament on the day when its policy meeting is held. There is speculation that the governor may be pressured (for additional easing) by politicians. The market is taking a wait-and-see stance.

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

 

NZIER Confidence

19

 

32

 

 

  AUD

 

Interest Rate Decision 

 

2.50%

2.50%

 

 

  AUD

 

RBA Rate Statement  

 

 

 

 

 

  EUR

 

German Production

 

-1.5%

1.9%

 

 

  JPY

 

BoJ Press Conference 

 

 

 

 

 

usdjpy

Upcoming Economic Events that you should be monitoring:

 

Cur.

 

Event

Actual

Forecast

Previous

 

  JPY

 

Adjusted Current Acct.

 

0.19T

0.10T

 

 

  JPY

 

Current Account n.s.a.

 

0.198T

0.417T

 

 

  CNY

 

HSBC Services PMI (Sep)

 

53.8

54.1

 

 

  JPY

 

BoJ Monthly Report

 

 

 

 

 

  CAD

 

Housing Starts (Sep)

 

196.0K

192.4K

 

 

  USD

 

FOMC Meeting Minutes 

 

 

 

 

Government Bond Auction

Date Time Country Auction

Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction

 

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