Analysis and Recommendation (USD/JPY Forecast 25 May):
The USD/JPY dipped 24 points matching the decline in the US dollar while traders wait for a decision and announcement from the Bank of Japan which is concluding its two day meeting in just a few hours. The pair is trading at 120.80.
The Bank of Japan concludes its two-day policy meeting later in the session and while the central bank is widely expected to stand pat on policy, with some focus on how it perceived GDP growth in the first quarter.
“There is little tension over the Bank of Japan policy meeting. Governor Kuroda and colleagues have sounded comfortable with the current policy stance and are likely to point to the slight upside surprise on Q1 GDP as further vindication,” Sean Callow, senior currency strategist at Westpac in Sydney, wrote in a note.
The dollar was little changed at 121.04 yen after losing 0.3 percent overnight to end a five-day winning run. The greenback scaled a two-month peak of 121.49 midweek on bets the currency was ready for a run higher after weeks in the doldrums.
U.S. existing-home sales declined 3.3 percent to a seasonally adjusted annual rate of 5.04 million in April from 5.21 million in the previous month, reported the National Association of Realtors on Thursday.
ForexTraq 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 for USD/JPY in our weekly reports.
Today’s economic releases actual vs. forecast:
|USD||FOMC Member Williams|
|JPY||BoJ Press Conference|
Upcoming Economic Events that you should be monitoring:
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
USD/JPY analysis forecast
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