Analysis and Recommendations (EUR/JPY Analysis Forecast):
The EUR/JPY gained 15 points to trade at 134.72 even though the euro weakened against its crosses yesterday and this morning. The euro fell from the upper 1.14 level to trade at 1.1143 on comments from the ECB on its QA purchases and worries about Greece. The Japanese yen failed to show any positive reaction to a better than expected GDP print this morning. The Nikkei rose about 0.8 percent, approaching its best levels since late last month, after data released before the market open showed Japan’s economy grew at a 2.4 percent annualized rate in the January-March period. That was its fastest pace in a year, beating the consensus estimate for 1.5 percent growth.
While investors absorbed the overall GDP data, some warned that the details failed to tell a story of a sustainable economic recovery. The better-than-expected Japanese GDP figures gave some support to the yen, as it less likely that the Bank of Japan would take additional easing steps anytime soon. The BOJ is likely to stand pat at a policy meeting on Friday.
The euro nursed losses after plunging more than 1 percent against the dollar in the previous session, following European Central Bank Executive Board member Benoit Coeure saying the ECB could “moderately” increase its bond-buying program in May and June, and possibly in September.
ForexTraq provides in-depth analysis for each currency and commodity we review in forex trading. 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 for EUR/JPY in our weekly reports and we provide daily updates and outlooks.
Today’s economic releases actual vs. forecast:
|AUD||RBA Assist Gov Lowe Speaks|
|JPY||GDP (YoY) (Q1)||2.4%||1.5%||1.1%|
|JPY||GDP (QoQ) (Q1)||0.6%||0.4%||0.3%|
|AUD||Westpac Consumer Sentiment||6.4%||-3.2%|
Upcoming Economic Events that you should be monitoring for EUR/JPY in forex trading:
Thursday, May 21, 2015
|CNY||HSBC Manufacturing PMI||49.3||48.9|
|EUR||German Manufacturing PMI||52.3||52.1|
|GBP||Retail Sales (MoM) (Apr)||0.4%||-0.5%|
|USD||Existing Home Sales (Apr)||5.24M||5.19M|
|USD||Philadelphia Fed Manufacturing||8.0||7.5|
Government Bond Auctions
Date Time Country
May 21 08:30 Spain Auctions Bonos
May 21 09:03 Sweden Holds bond exchange auction
May 21 09:10 France Auctions BTANs
May 21 09:30 UK Auctions 4.75% 2030 Conventional Gilt
May 21 10:10 France Auctions
May 21 15:30 Italy Announces details of CTZ/BTPei on 26 May
May 21 15:00 US Announces details of 2-year FRN on 27 May, plus 2/5/7 year
May 21 17:00 US Auctions 10-year TIPs
May 22 09:03 Sweden Holds bond exchange auction
May 22 10:00 Norway Details bond auction on 27 May
EUR/JPY analysis forecast
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