EUR/JPY Weekly Fundamental Analysis February 10 – 14, 2014 Forecast

Weekly Analysis and Recommendations:

The EUR/JPY  climbed steadily this week as traders remained risk adverse supporting the Japanese yen. European markets will have to digest the latest decisions, or lack thereof, by the ECB and the German Constitutional Court (GCC). Traders remain of the view that the Eurozone macro, political and financial background will remain supportive despite those resurging concerns. As far as they understand it, the decision by the GCC to defer its ruling to the European Court of Justice reduces the risk of a significant limitation being attached to the implementation of OMT. The European Central Bank on Thursday kept its benchmark interest rate unchanged at a record low of 0.25 percent. ECB President Marion Draghi did not indicate readiness to take monetary policy easing measures anytime soon.

This led market players to buy euros against many other major currencies, including the yen. In the dollar-yen sectors, the development worked in favor of the greenback, traders said.

The key Japanese index of indicators designed to show the current state of the economy rose in December to its highest level in more than five years as companies boosted production and tried to increase employment as their profits recovered, the government said Friday.

The index of coincident indicators, such as industrial output, retail sales and new job offers, climbed 1.0 point from the previous month to 111.7, up for the fourth straight month, against the 2010 base of 100, the Cabinet Office said in a preliminary report.

The figure was the highest since May 2008, before the bankruptcy of Lehman Brothers Holdings Inc. in September that year triggered the global financial meltdown and dragged down Japan’s economy, an official at the office said.  

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.

Historical: From 2011 to Present

Highest: 133.80 JPY on May 22, 2013

Average: 109.45 JPY over this period.

Lowest: 94.12 JPY on Jul 24, 2012

Major Economic Events for the week of February 3-7 actual v. forecast for Yen, the Aussie, the Kiwi and USD

 

Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD

Government Bond Auction

Date Time Country 

Feb 10 10:03 Sweden

Feb 10 10:30 Germany

Feb 10 16:30 Italy

Feb 11 09:10 Holland

Feb 11 10:00 Norway

Feb 11 10:03 Sweden

Feb 11 10:30 Belgium

Feb 11 10:30 UK 

Feb 11 18:00 US

Feb 12 10:03 Sweden

Feb 12 10:10 Italy

Feb 12 10:30 Germany

Feb 12 10:30 Swiss

Feb 12 18:00 US

Feb 13 10:10 Italy

Feb 13 10:30 UK