EUR/JPY Fundamental Analysis August 21, 2014 Forecast

Analysis and Recommendations:

The EUR/JPY eased by 2 points as the JPY lost momentum but the euro was weaker trading at 137.08. Japan’s trade deficit rose in July from the month before to a wider than expected 964 billion yen ($9.4 billion), though exports were higher for the first time in three months. Japan’s demand for imports has moderated in recent months as business activity slowed following an increase in the national sales tax.

It was the 25th straight month of deficits for the world’s third-largest economy, due mainly to an increase in imports of oil and gas to compensate for idled nuclear reactors following meltdowns at the Fukushima Dai-Ichi nuclear power plant in 2011.

Exports rose 3.9 percent from a year earlier to 6.19 trillion yen ($60.2 billion), slightly outpacing a 2.3 percent increase in imports, to 7.15 trillion yen ($69.5 billion). Japan recorded an 822 billion yen deficit in June.

The euro softened on Monday after a Berlin meeting between the foreign ministers of Ukraine and Russia helped lower market worries, even if it did not resolve tensions between the two. Traders had fled higher-risk currencies to safe havens on Friday after Ukraine said it had destroyed some Russian armored cars, sparking fears of an escalation. But Russia dismissed the claim.

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.

Economic Data August 20, 2014 actual v. forecast

 

Upcoming Economic Events that you should be monitoring

Government Bond Auction

Date Time Country 

Aug 28 Tentative              EUR       Italian 10-y Bond Auction

Sep 8    Tentative              EUR       Italian 10-y Bond Auction

Sep 10   6:01pm                USD       10-y Bond Auction

Sep 11 Tentative               EUR       German 10-y Bond Auction