Weekly Analysis and Recommendation: The USD/JPY ended the week at 84.26 while its trading range for the week remained between the opening at 84.16 and the
Weekly Analysis and Recommendation:
The USD/JPY ended the week at 84.26 while its trading range for the week remained between the opening at 84.16 and the high of the week of 84.62 which was also an annual high for the pair. This week the currency remained weak with markets dealing with last Sundays election results giving Shinzo Abe and the Liberal Democratic Party a landslide victory without two thirds of the lower house. Abe did not waste time waiting to officially be appointed Prime Minister before he went after the Bank of Japan to push his economic platform.
The Bank of Japan added 10trillion yen to its current asset purchase program as markets had expected.
The Liberal Democratic Party, set to form a new government, decided Thursday to put together a pump-priming package by Jan. 11 to keep the lethargic economy afloat, party lawmakers said Thursday. “We’ll work out the budget by giving up yearend and New Year’s holidays,” LDP Policy Research Council Chairman Akira Amari told reporters after a meeting of party executives where the decision was made.
While the meeting fell short of specifying the size of the supplementary budget for fiscal 2012, which ends next March, he said, “It will be sufficient enough to pull Japan out of deflation.”
Date |
Last |
Open |
High |
Low |
Change % |
Dec 21, 2012 |
84.26 |
84.43 |
84.44 |
83.86 |
-0.21% |
Dec 20, 2012 |
84.43 |
84.24 |
84.45 |
83.86 |
0.23% |
Dec 19, 2012 |
84.24 |
84.36 |
84.62 |
83.95 |
-0.15% |
Dec 18, 2012 |
84.36 |
83.92 |
84.36 |
83.82 |
0.53% |
Dec 17, 2012 |
83.92 |
84.16 |
84.16 |
83.61 |
-0.28% |
I would like to take this time to express my best wishes to all of my readers during this holiday season and extend the best hopes for profitable trading in 2013.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Major Economic Events for the week of December 17-21 actual v. forecast for Yen, the Aussie, the Kiwi and USD
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
Dec. 17 |
13:30 |
USD |
NY Empire State Manufacturing Index |
-8.1 |
-1.0 |
-5.2 |
14:00 |
USD |
TIC Net Long-Term Transactions |
1.3B |
25.0B |
3.2B |
|
Dec. 18 |
13:30 |
USD |
Current Account |
-107.5B |
-103.4B |
-118.1B |
21:45 |
NZD |
Current Account |
-4.42B |
-4.40B |
-1.80B |
|
23:50 |
JPY |
Trade Balance |
-0.87T |
-0.81T |
-0.62T |
|
Dec. 19 |
13:30 |
USD |
Building Permits |
0.899M |
0.875M |
0.868M |
13:30 |
USD |
Housing Starts |
0.861M |
0.873M |
0.888M |
|
21:45 |
NZD |
GDP (QoQ) |
0.2% |
0.4% |
0.3% |
|
Dec. 20 |
04:00 |
JPY |
Interest Rate Decision |
0.10% |
0.10% |
0.10% |
13:30 |
USD |
Initial Jobless Claims |
361K |
357K |
344K |
|
13:30 |
USD |
GDP (QoQ) |
3.1% |
2.8% |
2.7% |
|
13:30 |
USD |
Continuing Jobless Claims |
3225K |
3199K |
3213K |
|
15:00 |
USD |
Existing Home Sales |
5.04M |
4.87M |
4.76M |
|
15:00 |
USD |
Philadelphia Fed Manufacturing Index |
8.1 |
-3.0 |
-10.7 |
|
Dec. 21 |
13:30 |
USD |
Core Durable Goods Orders (MoM) |
1.6% |
-0.2% |
1.9% |
13:30 |
USD |
Core PCE Price Index (MoM) |
0.0% |
0.1% |
0.1% |
|
13:30 |
USD |
Durable Goods Orders (MoM) |
0.7% |
0.2% |
1.1% |
|
13:30 |
USD |
Personal Spending (MoM) |
0.4% |
0.3% |
-0.1% |
|
14:55 |
USD |
Michigan Consumer Sentiment |
72.9 |
74.7 |
74.5 |
Historical: From 2010 to present
Highest: 94.99 on May 05, 2010
Average: 82.77 over this period
Lowest: 75.58 on Oct 31, 2011
Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Dec. 27 |
23:30 |
JPY |
-0.5% |
-0.5% |
|
|
23:50 |
JPY |
-0.5% |
1.6% |
|
|
23:50 |
JPY |
1.1% |
-1.2% |
Government Bond Auction
Date Time Country
Dec 21 16:30 Italy
Dec 26 01:30 Japan
Dec 27 10:10 Italy
Dec 28 10:10 Italy