USD/JPY Fundamental Analysis – August 28, 2015 – Forecast
The USD/JPY added 18 points to reach 120.10 as the pair moved back into its normal trading range. In overseas trading overnight, the dollar briefly rose to near ¥120.40 after the People’s Bank of China announced additional monetary easing steps in a bid to shore up the economy and stock prices.
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Even though the easing measures surprised market participants, an official at a currency broker said that “they did not fully dispel investor concerns about the Chinese economy.”
Reflecting lingering worries over China, the dollar was weak around ¥118.50 in early Tokyo trading. The dollar rose above ¥119 in midmorning trading but failed to extend gains since the upside of Tokyo stocks were limited.
The U.S. currency drew renewed demand and topped ¥119.80 in the afternoon thanks to a surge in Tokyo stock prices following a rebound in Shanghai equities, market sources said.
A risk-averse mood retreated somewhat thanks to a decision by the People’s Bank of China to reduce its key interest rate and ease bank reserve requirements, brokers said.
Undervalued exporters and other mainstay issues attracted a wave of buybacks in the Tokyo market.
Although the key indexes sank into negative territory in the morning session due to profit-taking, stocks soon wiped out the losses and accelerated their upswing in the afternoon, briefly pushing up the Nikkei average more than 600 points.
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 up to the data analysis and information in our weekly reports.
Today’s economic releases:
|
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
AUD |
Private New Capital Expenditure |
-4.0% |
-2.5% |
-4.7% |
Upcoming Economic Events that you should be monitoring:
Friday, August 28 2015
|
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
JPY |
Household Spending (YoY) (Jul) |
|
1.3% |
-2.0% |
|
||
|
JPY |
Household Spending (MoM) (Jul) |
|
2.2% |
-3.0% |
|
||
|
JPY |
National Core CPI (YoY) (Jul) |
|
-0.2% |
0.1% |
|
||
|
JPY |
Tokyo Core CPI (YoY) (Aug) |
|
-0.2% |
-0.1% |
|
||
|
JPY |
Retail Sales (YoY) (Jul) |
|
1.1% |
0.9% |
|
||
|
CHF |
GDP (YoY) (Q2) |
|
0.9% |
1.1% |
|
||
|
CHF |
GDP (QoQ) (Q2) |
|
-0.1% |
-0.2% |
|
||
|
EUR |
Spanish CPI (YoY) (Aug) |
|
-0.1% |
0.1% |
|
||
|
EUR |
Spanish HICP (YoY) (Aug) |
|
-0.2% |
0.0% |
|
||
|
GBP |
Business Investment (QoQ) |
|
1.7% |
2.0% |
|
||
|
GBP |
GDP (QoQ) (Q2) |
|
0.7% |
0.7% |
|
||
|
EUR |
German CPI (MoM) (Aug) |
|
-0.1% |
0.2% |
|
||
|
USD |
Core PCE Price Index (MoM) (Jul) |
|
0.1% |
0.1% |
|
||
|
USD |
Goods Trade Balance (Jul) |
|
|
-62.26B |
|
||
|
USD |
Personal Spending (MoM) (Jul) |
|
0.4% |
0.2% |
|
||
|
CAD |
RMPI (MoM) (Jul) |
|
-4.0% |
0.0% |
|
||
|
USD |
Michigan Consumer Expectations |
|
|
83.8 |
Government Bond Auctions
Date Time Country
Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ
Aug 26 19:00 US Holds 2-year FRN note auction
Aug 26 12:05 Norway Holds bond auction
Aug 26 19:00 US Holds 5-year note auction
Aug 26 19:00 US Holds 2-year FRN auction
Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds
Aug 27 19:00 US Holds 7-year note auction
Aug 28 11:10 Italy Auctions BTPs/CCTeus
Sep 01 11:15 Austria Holds RAGB bond sale
Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt
Sep 02 11:03 Sweden Holds bond auction
Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl
Sep 02 11:30 UK Auctions new Jan 2021 Gilt
Sep 03 10:30 Spain Auctions Bonos/Obligaciones
Sep 03 11:10 France Auctions OATs
Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep
Sep 03 00:00 US Announces details of 10-year note on 09 Sep