By FXEmpire.com
Introduction: This is one of the most popular crosses. The primary reason why EUR/JPY has rallied 11 percent over the past 3.5 months is because of US growth – not many people realize that the price action of EUR/JPY is directly correlated with how the US economy is doing.
Weekly Analysis and Recommendations:
The EUR/JPY followed cues from the USDJPY all week, as the pair saw the JPY fall all week. The euro has jumped against the US dollar amid German Chancellor Angela Merkel’s supportive comments for the European Central Bank (ECB). On a visit to Ottawa, Ms Merkel’s gave solid backing for the ECB and appeared to back ECB President Mario Draghi’s vow to do everything possible to defend the euro.
Some traders saw that as evidence that Merkel may be warming to the idea of the ECB buying bonds of weak eurozone countries if they meet tough conditions.
As risk aversion slowly dissipated, the JPY was left dealing with poor eco data in Japan and political turmoil and lack of action by the BoJ
|
Date |
Open |
High |
Low |
Change % |
|
|
Aug 17, 2012 |
98.13 |
97.95 |
98.41 |
97.73 |
0.18% |
|
Aug 16, 2012 |
97.95 |
97.09 |
98.18 |
97.08 |
0.88% |
|
Aug 15, 2012 |
97.09 |
97.15 |
97.43 |
96.55 |
-0.06% |
|
Aug 14, 2012 |
97.14 |
96.57 |
97.47 |
96.55 |
0.60% |
|
Aug 13, 2012 |
96.57 |
96.06 |
96.91 |
95.94 |
0.53% |
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
Major Economic Events for the week of August 13-17, 2012 actual v. forecast for Yen, the Aussie, the Kiwi and USD
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Aug 13 |
22:45 |
NZD |
Core Retail Sales q/q |
0.9% |
1.0% |
-1.4% |
|
Aug 14 |
12:30 |
USD |
Core Retail Sales m/m |
0.8% |
0.4% |
-0.8% |
|
12:30 |
USD |
PPI m/m |
0.3% |
0.3% |
0.1% |
|
|
12:30 |
USD |
Retail Sales m/m |
0.8% |
0.3% |
-0.7% |
|
|
Aug 15 |
12:30 |
USD |
Core CPI m/m |
0.1% |
0.2% |
0.2% |
|
Aug 16 |
12:30 |
USD |
Building Permits |
0.81M |
0.77M |
0.76M |
|
12:30 |
USD |
Unemployment Claims |
366K |
365K |
364K |
|
|
14:00 |
USD |
Philly Fed Manufacturing Index |
-7.1 |
-4.7 |
-12.9 |
|
|
22:45 |
NZD |
PPI Input q/q |
0.6% |
-0.2% |
0.3% |
|
|
Aug 17 |
13:55 |
USD |
Prelim UoM Consumer Sentiment |
73.6 |
72.5 |
72.3 |
Historical: From 2010 to Present
Highest: 134.38 JPY on Jan 11, 2010
Average: 111.13 JPY over this period.
Lowest: 94.12 JPY on July 24, 2012
Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Aug 21 |
1:30 |
AUD |
Monetary Policy Meeting Minutes |
|
|
3:00 |
NZD |
Inflation Expectations q/q |
2.4% |
|
|
23:50 |
JPY |
Trade Balance |
-0.30T |
|
|
Aug 22 |
0:30 |
AUD |
MI Leading Index m/m |
0.8% |
|
14:00 |
USD |
Existing Home Sales |
4.37M |
|
|
14:30 |
USD |
Crude Oil Inventories |
-3.7M |
|
|
18:00 |
USD |
FOMC Meeting Minutes |
||
|
Aug 23 |
12:30 |
USD |
Unemployment Claims |
366K |
|
13:00 |
USD |
Flash Manufacturing PMI |
51.4 |
|
|
14:00 |
USD |
New Home Sales |
350K |
|
|
23:30 |
AUD |
RBA Gov Stevens Speaks |
||
|
Aug 24 |
0:00 |
AUD |
CB Leading Index m/m |
0.4% |
|
12:30 |
USD |
Core Durable Goods Orders m/m |
-1.1% |
|
|
12:30 |
USD |
Durable Goods Orders m/m |
1.6% |
Click here for further EUR/JPY Forecast.
Originally posted here
