By FXEmpire.com
USD/JPY Fundamental Analysis March 27, 2012, Forecast
Analysis and Recommendation: (close of Asian session)
The USD/JPY is trading at 82.41 after a quiet weekend and a quiet day of trading. There was little in the way of economic news or indicators affecting the Japanese market over the weekend and thru the day on Monday.
The combined effect of worries about the overflow of regional slowdown as China continues to slow and other Asian countries are also reporting slowdowns. The region is tight knit and dependent on each other as trading partners and also for exports to the EU and US. The continuing economic situation in Europe is flowing to these countries. Also over the weekend, Spain’s debt crisis and financial and borrowing problems began to move to center stage. Investors took the cue and moved to the USD giving additional strength to the US.
Economic Data Affecting the JPY, AUD or NZD from March 23 – 26, 2012 actual v. forecast
|
Mar. 25 |
22:45 |
NZD |
Trade Balance |
161M |
153M |
-159M |
There are no regional economic events affecting the JPY, AUD, or NZD on March 27, 2012
All Day G7 Meeting
The G7 meeting is the meeting of the finance ministers from the group of seven industrialized nations that are the United States, Japan, Germany, France, United Kingdom, Italy and Canada. The meeting takes place several times a year to discuss economic policy. Traders should pay close attention to this event as it might bring a new dimension to the markets.
13:00 USD S&P/Case-Shiller Home Price Indices (YoY) (Jan) -3.8% -4.0%
The S&P/Case-Shiller Home Price Indices released by the Standard & Poor’s examines changes in the value of the residential real estate market in 20 regions across the US. This report serves as an indicator for the health of the US housing market. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative, or bearish.
14:00 USD Consumer Confidence (Mar) 70.0 70.8
The Consumer Confidence released by the Conference Board captures the level of confidence that individuals have in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. Generally, a high reading is also positive for the USD, while a low reading is negative.
14:00 USD Richmond Fed Manufacturing Index (Mar) 18 20
The survey including information on shipments, new orders, order backlogs, and inventories conducted by Federal Reserve Bank of Richmond provides information on current activity in the manufacturing sector (mailing 220 business organizations). The industry inflation can be seen from the survey. Generally speaking, a high reading appreciates (or is bullish for) the USD, whereas a low reading is seen as negative (or bearish for) the USD.
16:45 USD Fed’s Bernanke Speech
The Fed Governor Ben Shalom Bernanke was born in 1953. He graduated from Harvard University and a Ph.D. in economics in 1979 from the Massachusetts Institute of Technology. In 2006 he became the Chairman of the Federal Reserve System. He gives a press conference as to how the Fed observes the current US economy and the value of USD. His comments may determine a short-term positive or negative trend.
Government Bond Auctions (this week)
Mar 26 09:10 Norway Nok 3.0bn NST 474 3.75% May 2021 Bond
Mar 26 10:30 Germany Eur 3.0bn new Mar 2013 Bubill
Mar 26 15:30 Italy Details BTP/CCTeu auction on Mar 29
Mar 27 09:10 Italy CTZ/BTPei auction
Mar 27 08:30 Spain 3 & 6M T-bill auction
Mar 27 17:00 US Auctions 2Y Notes
Mar 28 09:10 Italy BOT auction
Mar 28 17:00 US Auctions 3Y Notes
Mar 29 09:10 Italy BTP/CCTeu auction
Mar 29 17:00 US Auctions 7Y Notes
Originally posted here
