By FXEmpire.com
Analysis and Recommendation:
The USD/JPY witnesses huge sell off, as EU gives favorable nod to Spanish bailout request. The euro soared and then JPY and USD fell against most of their trading partners. The pair is currently trading at 79.64. A word to the wise, there is no justification for this shift and markets will correct themselves during the day. Watch carefully. We should see the euro plummet, as the world realizes that at this time there is no money or mechanism to assist Spain, especially before Greek elections.
The EFSF is depleted pretty much with the loan packages already promised and it just doesnt have the money available for Spain, what is left is mostly pledges that might never get fulfilled. Spain is one of those outstanding pledges. Next we have the ESM, which is scheduled to take effect next month, but it has not been funded and still has not received final approval to be activated. This fund was part of the Fiscal Pact, which has not been ratified.
The question is how does the EU get the funds and what happened to this supposed grand scheme for a firewall. It is always nice to promise money you do not have. Does the EU think they can go into the private marketplace and raise this money, quickly and cheaply.
All this before next weeks Greek elections.
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 June 9-10-11, 2012 actual v. forecast
|
Jun. 09 |
CNY |
Chinese CPI (YoY) |
3.0% |
3.2% |
3.4% |
|
|
CNY |
Chinese PPI (YoY) |
-1.4% |
-1.1% |
-0.7% |
||
|
CNY |
Chinese CPI (MoM) |
-0.3% |
-0.1% |
-0.1% |
||
|
CNY |
Chinese Fixed Asset Investment (YoY) |
20.1% |
20.0% |
20.2% |
||
|
CNY |
Chinese Industrial Production (YoY) |
9.6% |
9.9% |
9.3% |
||
|
CNY |
Chinese Retail Sales (YoY) |
13.8% |
14.3% |
14.1% |
||
|
Jun. 10 |
CNY |
Chinese Trade Balance |
18.70B |
16.30B |
18.40B |
|
|
Jun. 11 |
JPY |
BSI Large Manufacturing Conditions |
-5.7 |
-2.4 |
-7.3 |
|
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jun 12 |
1:30 |
AUD |
4 |
||
|
12th-14th |
NZD |
-0.3% |
|||
|
12:30 |
USD |
-0.5% |
|||
|
18:00 |
USD |
59.1B |
|||
|
23:50 |
JPY |
-2.8% |
|||
|
Jun 13 |
0:30 |
AUD |
0.8% |
||
|
12:30 |
USD |
-0.2% |
|||
|
12:30 |
USD |
0.1% |
|||
|
14:00 |
USD |
0.3% |
|||
|
21:00 |
NZD |
2.50% |
2.50% |
||
|
21:00 |
NZD |
||||
|
21:00 |
NZD |
||||
|
Jun 14 |
1:00 |
AUD |
3.1% |
||
|
12:30 |
USD |
0.2% |
|||
|
12:30 |
USD |
377K |
|||
|
12:30 |
USD |
0.0% |
|||
|
12:30 |
USD |
-124B |
|||
|
Jun 15 |
12:30 |
USD |
17.1 |
||
|
13:00 |
USD |
36.2B |
|||
|
13:15 |
USD |
79.2% |
|||
|
13:15 |
USD |
1.1% |
|||
|
13:55 |
USD |
79.3 |
Click here to read USD/JPY Technical Analysis.
Originally posted here
