By FXEmpire.com
Analysis and Recommendation:
The USD/JPY is trading at 78.46 moving to the upper level of the trading range that the pair has been battling in for over a week. The pair has remained within the 7850-7800 price but with the surprise lack of policy changes by the FOMC the USD has been able to add momentum, pushing the JPY down. The pair still remain locked in this range with risk aversion continuing to be the market theme.
Investors are now waiting from news from the BoE, which is not expected to effect this pair, but that will be followed by announcements, plans and a roadmap for the saving of the monetary union, offered by President Draghi last week or at least markets are hoping for some guidance. A lack thereof will see currencies tumbling.
With the Fed meeting out of the way, markets are focused on Thursday’s European Central Bank (ECB) policy meeting. The ECB has been under pressure to take stronger action to address the eurozone’s sovereign debt crisis and economic downturn. Traders now expect at least a 25 basis point rate cut at the ECB meeting and some new policy and stimulus packages.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthlyanalysis 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 2, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Aug. 02 |
JPY |
10-Year JGB Auction |
0.772% |
0.836% |
|
|
JPY |
Monetary Base (YoY) |
8.6% |
6.2% |
5.9% |
|
|
NZD |
ANZ Commodity Price Index (MoM) |
-0.5% |
-2.4% |
||
|
AUD |
Retail Sales (MoM) |
1.0% |
0.7% |
0.8% |
|
|
AUD |
Trade Balance |
0.01B |
-0.35B |
-0.31B |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
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 |
Government Bond Auctions
Date Time Country
Aug 06 09:10 Norway
Aug 07 00:30 Japan
Aug 07 09:15 Austria
Aug 07 14:30 UK
Aug 07 17:00 US
Aug 08 09:30 Germany
Aug 08 10:00 Norway
Aug 08 15:30 Italy
Aug 08 17:00 US
Aug 09 15:30 Italy
Aug 09 17:00 US
Aug 10 10:00 Belgium
Click here for further USD/JPY Forecast.
Originally posted here
