USD/JPY Fundamental Analysis October 9, 2014 Forecast

Analysis and Recommendation:

The USD/JPY gained 18 points to climb back to 108.32 after the Bank of Japan decision on Tuesday. The Bank held rates and policy. Japan’s current account surplus fell less than expected, Ministry of Finance data showed today. The surplus declined to 287.1 billion yen ($2.7 billion) in August, compared with a 200 billion yen forecast by analysts surveyed by Bloomberg. The IMF said it expects the Federal Reserve to start raising U.S. interest rates in the middle of next year, a projection that’s in line with the median estimate of economists surveyed by Bloomberg. The U.S. central bank has held the federal funds target rate near zero since December 2008.

The Bank of Japan on Tuesday kept its monetary policy steady, saying the economy is recovering despite the jolt it suffered from the consumption tax hike in April, but the bank downgraded its assessment of industrial output.

The world economy will expand 3.8 percent next year, compared with a July forecast for 4 percent, the IMF said. It also cut the euro area outlook for the period to 1.3 percent from 1.5 percent and Japan’s to 0.8 percent from 1.1 percent.

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:

 

Upcoming Economic Events that you should be monitoring:

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