USD/JPY Fundamental Analysis – September 1, 2015 – Forecast

Analysis and Recommendation:

The USD/JPY tumbled 65 points to 121.06 as the US dollar weakened in the morning session as traders prepare for a new month. Traders moved past a rash of data released on Friday that was fairly mixed but retail sales improved.

The US dollar index, which measures the greenback against a basket of currencies, touched its highest level in eight days after Fed vice chair Stanley Fischer told a central bankers conference at Jackson Hole, Wyoming, at the weekend that the Fed remained on track for lift-off this year and that the “door remains open” to a September hike.

The comments add to those from Fed Atlanta president Dennis Lockhart that the odds of a rate hike in September are roughly even, and from St Louis Fed president James Bullard and Cleveland Fed president Loretta Mester playing down the impact of recent market turmoil.

The U.S. dollar traded in the lower 121 yen range early Monday in Tokyo, slightly lower from its levels on Friday in New York.

A worse-than-expected Chinese economic indicator released late the previous week triggered the global equity rout early in the week. The Nikkei average fell below 18,000 for the first time in six months on Tuesday, extending its losing streak to a sixth day, the longest since Prime Minister Shinzo Abe returned to office with the reflationary policy package known as “Abenomics.”

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:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, September 1, 2015

Government Bond Auctions

Date Time Country

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep