Weekly Analysis and Recommendation: The USD/JPY ended the week back over the 108 level trading as high as 108.3 as the US dollar reasserted its dominance.
The USD/JPY ended the week back over the 108 level trading as high as 108.3 as the US dollar reasserted its dominance. The Federal Reserve may provide some clarity next Wednesday with the release of their latest monetary policy statement. Markets expect the Fed to fully wind down their once-massive quantitative easing program, but opinions are divided about whether policy makers will signal that interest rates will begin to rise before next summer. Recent US economic data has been mixed, and with the nation’s sluggish economic recovery jeopardized by growing problems in Europe and elsewhere, the Fed may be reluctant to tighten in the first half of 2015. In economic news, US new home sales inched up 0.2% to an annual rate of 467,000 in September from the revised August rate of 466,000.
The dollar finished the week 1.1% higher against the yen Friday afternoon, benefiting from strong economic data out of the U.S. and Europe. As risk aversion has faded USDJPY has shifted back to trading on fundamentals, driving it higher. This week is an important one, with significant data releases, including retail sales, industrial production, national CPI, household spending and the jobless rate.
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.
Historical: From 2011 to present
Highest: 110.11 on September, 2014
Average: 83.18 over this period
Lowest: 75.58 on Oct 31, 2011
Major Economic Events for the week of October 27-31st
Time |
Cur. |
Imp. |
Event |
Actual |
Forecast |
Previous |
|
Monday, October 27 |
|||||||
|
Holiday |
New Zealand – Labour Day |
|||||
|
EUR |
German Ifo Business Climate Index (Oct) |
|
104.3 |
104.7 |
|
|
|
USD |
Pending Home Sales (MoM) (Sep) |
|
0.5% |
-1.0% |
|
|
Tuesday, October 28 |
|||||||
|
USD |
Core Durable Goods Orders (MoM) (Sep) |
|
0.5% |
0.4% |
|
|
|
USD |
CB Consumer Confidence (Oct) |
|
87.0 |
86.0 |
|
|
Wednesday, October 29 |
|||||||
NZD |
Interest Rate Decision |
|
3.50% |
3.50% |
|
||
Thursday, October 30 |
|||||||
|
EUR |
German Unemployment Change (Oct) |
|
5K |
13K |
|
|
|
USD |
GDP (QoQ) (Q3) |
|
3.0% |
4.6% |
|
|
Friday, October 31 |
|||||||
|
EUR |
CPI (YoY) (Oct) |
|
0.4% |
0.3% |
|
|
|
CAD |
GDP (MoM) (Aug) |
|
|
|
Upcoming Government Bond Auctions
Date Time Country
Oct 27 12:30 Germany Eur 2.0bn new 12M Bubill (Oct 2015) auction
Oct 27 18:30 Italy Announces details of BTP/CCTeu auctions on Oct 30
Oct 27 12:10 Italy BTPei/CTZ auctions
Oct 28 12:10 Italy BOT auction
Oct 28 19:00 US 2Y Note auction
Oct 29 12:03 Sweden Bond auction
Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction
Oct 29 17:30 US 2Y FRN auction
Oct 29 19:00 US 5Y Note auction
Oct 30 12:10 Italy BTP/CCTeu auctions
Oct 30 19:00 US 7Y Note auction