EUR/JPY Fundamental Analysis July 31, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

The EUR/JPY is trading at 96.37 after climbing from a record low last week. The pair had fallen to trade in the mid 94 price range. As the euro gained momentum from a pledge by ECB Chairman Draghi to save the monetary union, echoed later by Merkel and Hollande, markets began to breathe easier and moved to more risk and also negative sentiment towards the euro began to ease. This pair got a double whammy, as risk aversion faded the JPY lost strength as the euro climbed on positive sentiment.

Traders will wait to see exactly what the ECB has in store this week, as the statements were not backed up by plans or courses of action.

Also the US Fed meeting is this week and traders are hoping for some stimulus from the Feds.

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 July 29-30, 2012 actual v. forecast

Date	Currency	Event	Actual	Forecast	Previous
Jul. 29	KRW	South Korean manufacturing BSI Index	69.00	81.00
NZD	Building Consents (MoM)	5.7%	-7.1%
Jul. 30	JPY	Industrial Production (MoM)	-0.1%	1.5%	-3.4%
AUD	HIA New Home Sales (MoM)	2.8%	0.7%

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date	Time	Currency	Event	Previous
Jul 31	1:00	NZD	NBNZ Business Confidence	12.6
1:30	AUD	Building Approvals m/m	27.3%
1:30	AUD	Private Sector Credit m/m	0.5%
1:30	JPY	Average Cash Earnings y/y	-1.1%
12:30	USD	Core PCE Price Index m/m	0.1%
12:30	USD	Employment Cost Index q/q	0.4%
12:30	USD	Personal Spending m/m	0.0%
13:00	USD	S&P/CS Composite-20 HPI y/y	-1.9%
13:45	USD	Chicago PMI	52.9
14:00	USD	CB Consumer Confidence	62.0
Aug 1	1:30	AUD	HPI q/q	-1.1%
12:15	USD	ADP Non-Farm Employment Change	176K
14:00	USD	ISM Manufacturing PMI	49.7
18:15	USD	FOMC Statement
Aug 2	1:30	AUD	Retail Sales m/m	0.5%
1:30	AUD	Trade Balance	-0.29B
12:30	USD	Unemployment Claims
14:00	USD	Factory Orders m/m	0.7%
23:30	AUD	AIG Services Index	48.8
Aug 3	12:30	USD	Non-Farm Employment Change	80K
12:30	USD	Unemployment Rate	8.2%
12:30	USD	Average Hourly Earnings m/m	0.3%
14:00	USD	ISM Non-Manufacturing PMI	52.1

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Originally posted here