By FXEmpire.com
Analysis and Recommendation:
The USD/JPY fell to 78.75 as investors shifted from the USD to the Yen in safe haven moves. The US had a very disappointing home sales report, which was well under forecast, supporting the theory that the US is hitting a stall.
Markets remain in risk aversion mode and the USD and JPY are extremely strong.
Problems with Spanish banks, Greece politics and Italian Bonds all have investors worried as they continue to shed all European associated assets. The euro fell to a multiyear low, trading at 1.2385.
The euro saw biggest drop in at least eight months as increasing likelihood of Spain needing outside assistance to fix its public finance and banking system led to a major escalation in the perennial crisis in the currency bloc.
Spanish government bond yields surged to a six-month high while German bond yields fell to record lows, pushing the spread between the two to a new high, adding stress to markets already frayed by the anxiety Greece may leave the euro zone.
Italian debt yield also rose above six percent for the first time since May while traders also warily look at whether the Irish will support Europe’s new fiscal treaty as expected in a referendum on Thursday.
With investors trying to escape the euro zone and to hoard liquid assets, the dollar’s index against a basket of currencies rose to 20-month high of 83.11 The dollar fell to as low as 78.71 yen, its lowest in 3 1/2 months, as investors favored the yen, the currency of the world’s largest creditor nation despite a mountain of its public debt.
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 up to the data analysis and information in our weekly reports.
Economic Data for May 30-31, 2012 actual v. forecast
|
CHF |
KOF Leading Indicators |
0.81 |
0.48 |
0.43 |
|
|
USD |
Pending Home Sales (MoM) |
-5.5% |
0.1% |
3.8% |
|
|
May 31 |
KRW |
South Korean Industrial Prod |
0.0% |
0.3% |
0.3% |
|
JPY |
Industrial Production (MoM) |
0.2% |
0.5% |
1.3% |
|
|
AUD |
Building Approvals (MoM) |
-8.7% |
0.7% |
6.0% |
|
|
AUD |
Private New Capital Expend |
6.1% |
4.0% |
-0.7% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Previous |
|
|
Jun 1 |
12:30 |
USD |
115K |
|
|
12:30 |
USD |
8.1% |
||
|
12:30 |
USD |
0.2% |
||
|
12:30 |
USD |
0.3% |
||
|
14:00 |
USD |
54.8 |
Government Bond Auctions
Date Time Country
May 31 14:30 Sweden
Jun 04 10:00 Norway
Jun 05 00:30 Japan Jun 05 09:30
Jun 05 14:30 Sweden
Jun 06 09:30 Germany
Jun 06 09:30 Portugal
Jun 06 14:30 UK
Jun 07 00:30 Japan
Jun 07 08:30 Spain
Jun 07 08:50 France
Jun 07 09:10 Sweden
Jun 07 15:00 US
Jun 08 10:00 Belgium
Jun 08 15:30 Italy
Click here for updated USD/JPY News.
Originally posted here
