By FXEmpire.com

Analysis and Recommendation: (close of Asian session)

The USD/JPY is trading at 80.31 as the USD maintained it strength against the Japanese yen. Markets remain is risk aversion safe haven mode with most currencies and commodities losing to either the USD or the JPY, it is the battle between the two strong currencies here.

Yesterdays eco data in Japan was mostly ignored. US data, which was fairly positive, added to the strength of the greenback, but again, the pair simply balanced between each other as global sentiment remained the same, and investors shed anything associated with Europe or risk.

The three big questions that face the EU are?

  • Greece default or no default, euro or no euro.
  • Spain, default or bail out or just total collapse
  • Merkel and Sarkozy, will these two really work well together.

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 May 16 – 17, 2012 actual v. forecast

GBP

Average Earnings Index +Bonus

0.6%

1.0%

1.1%

GBP

Claimant Count Change

-13.7K

5.0K

-5.4K

EUR

CPI (YoY)

2.6%

2.6%

2.6%

EUR

Core CPI (YoY)

1.6%

1.5%

1.6%

EUR

German 10-Year Bund Auction

1.470%

1.770%

EUR

Portuguese Unemployment Rate

14.90%

14.00%

USD

Building Permits

0.715M

0.730M

0.769M

USD

Housing Starts

0.717M

0.680M

0.699M

CAD

Manufacturing Sales (MoM)

1.90%

1.00%

-0.20%

USD

Industrial Production (MoM)

1.1%

0.6%

-0.6%

NZD

PPI Input (QoQ)

0.3%

0.0%

0.5%

May 17

JPY

GDP (QoQ)

1.0%

0.9%

-0.2%

JPY

GDP Price Index (YoY)

-1.2%

-1.4%

-1.8%

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

The calendar for the end of the week is very thin. There should be little eco data that will affect the markets

Click here a current USD/JPY Chart.

Originally posted here