EUR/JPY Fundamental Analysis, March 10, 2015 – Forecast

Analysis and Recommendations:

The EUR/JPY gained 10 points as the Japanese yen weakened after lackluster data. The euro remains flat at a multi-year low of 1.0842 as the EURJPY moved to 131.07.  Today’s GDP data fell for the third straight quarter of falling investment indicates companies remain reluctant to plow their record cash holdings into the economy as they work off inventories that swelled following the tax hike. A sustained recovery in consumer spending hinges on employers boosting pay faster than rising living costs.

Japan’s economy grew less than initially reported in the fourth quarter as capital expenditure declined in a worrying sign that a rebound in consumer spending is not encouraging business investment.

The revised fourth quarter data joins a mixed batch of indicators over recent months that underscore a fragile recovery from a recession, which analysts say could pressure the Bank of Japan to inject fresh stimulus later this year to meet its inflation goal and beat back years of falling prices.

The economy grew an annualized 1.5 per cent in October-December, Cabinet Office data showed Monday, down from a preliminary reading of an annualized 2.2 per cent expansion and below the median estimate for 2.2 per cent growth. In response to worries about the pace of economic growth and in an indication of the BOJ’s readiness to defend its inflation target, deputy governor Hiroshi Nakaso said on Monday that further monetary easing is likely if oil price falls hamper its efforts to ramp up inflation expectations.

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.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, March 10, 2015

Government Bond Auctions

Date Time Country

Mar 10 10:00 Holland Eur 2.5-3.5bn Apr 2018 DSL (Re-opening)

Mar 10 11:30 UK Auctions conventional Gilt

Mar 10 19:00 US Auctions 3-yr Notes

Mar 11 11:03 Sweden Holds bond auction

Mar 11 11:15 Norway Holds bond auction

Mar 11 11:30 Germany Eur 5bn Mar 2017 Schatz

Mar 11 19:00 US Auctions 10-yr Notes

Mar 12 10:30 Spain Auctions Bonos

Mar 12 11:10 Italy Auctions BTPs/CCTeus

Mar 12 11:30 UK Auctions I/L conventional Gilt

Mar 12 17:00 US Announces 10-yr TIPS auction on Mar 19

Mar 12 19:00 US Auctions 30-yr Bonds