Analysis and Recommendations (EUR/JPY Forecast for 25 May 2015 ):
The EUR/JPY is trading at 134.57 up by 8 points as traders wait on the BoJ conference in a few after. The euro gained a few points this morning as the tensions over Greece eased a bit. The euro was steady at $1.1110 after bouncing 0.2 percent overnight for its first gain in four days. It had hit a three-week low of $1.1062 earlier this week amid Greek debt concerns.
The dollar weakened against rivals for the first time in four sessions on Thursday after softer-than-expected U.S. data dented investors’ outlook for a recovery in the economy over the second quarter.
The euro was also bolstered against the dollar on Thursday by nascent signs of a recovery in euro zone activity, and a rise in German Bund yields which narrowed the spread over U.S. Treasuries. The composite flash PMI for the euro zone fell to 53.4 from 53.9, missing the 53.8 forecast in a Reuters poll. Despite the drop, data compiler Markit said, the euro zone economy is on track to grow 0.4 percent in the current quarter.
“The narrowing of yield spreads over U.S. Treasuries is having an impact on euro to dollar,” said Jeremy Stretch, head of currency strategy at CIBC World Markets.
Part of the reason that euro gains will be limited is a very accommodative monetary policy stance by the European Central Bank. Earlier this week, board member Benoit Coeure said the central bank would accelerate the pace of money printing to buy government bonds over the next two months.
ForexTraq provides in-depth analysis for each currency and commodity we review in trading forex. 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:
|USD||FOMC Member Williams|
|JPY||BoJ Press Conference|
Upcoming Economic Events that you should be monitoring for EUR/JPY in trading forex:
Monday, May 25, 2015
|United States – Memorial Day|
|Switzerland – Pentecost Monday|
|United Kingdom – Late May Bank Holiday|
|JPY||Exports (YoY) (Apr)||8.5%|
|JPY||Trade Balance (Apr)||229B|
Government Bond Auctions
Date Time Country
May 22 09:03 Sweden Holds bond exchange auction
May 22 10:00 Norway Details bond auction on 27 May
May 25 09:03 Sweden Holds bond exchange auction
May 25 15:30 Italy Announces details of BTP/CCTeu on 28 May
May 26 09:03 Sweden Holds bond exchange auction
May 26 09:10 Italy Auctions CTZ/BTPei
May 26 17:00 US Auctions 2-year notes
May 27 09:15 Norway Holds bond auction
May 27 09:30 Germany Eur 2bn 2.5% Aug 2046 Bund
May 27 09:30 UK Auctions 0.125% 2058 I/L Gilt
May 27 16:00 US Auctions 2-year FRNs
May 27 17:00 US Auctions 5-year notes
May 28 09:10 Italy Auctions BTPs/CCTeus
May 28 09:10 Sweden Holds inflation-linked bond auction
May 28 17:00 US Auctions 7-year notes
EUR/JPY analysis forecast for 25 May 2015
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