USD/JPY Fundamental Analysis November 8, 2012, Forecast

USD/JPY Fundamental Analysis November 8, 2012, Forecast
USD/JPY Fundamental Analysis November 8, 2012, Forecast

Analysis and Recommendation:

The USD/JPY is trading at 80.05, although the pair has maintained the momentum to hold above the 80 line, the initial reaction to Mr. Obama’s win has dropped the pair closer to the line. The pair was trading well above at 80.35 as markets opened this morning.

Although once this initial reaction has subsided, traders go back to find more risk and the world moves on, we can expect to see the JPY weaken and see the dollar push the pair back to the 80.20 range.

Public comments from officials at the MoF and policymakers at the BoJ are bearish JPY, as they continue to suggest a confidence in last week’s easing measures and commitment toward cooperation.  Additionally, the domestic political environment remains challenging, given the standoff over a deficit financing bill, as credit rating agencies have recently expressed concern about the impact of uncertainty

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 November 7, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Nov. 06

 

USD

 

 

US Presidential Election 

 Obama Wins

 

There were no other releases this morning in Asia

 

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

Date

Time

Currency

Event

Forecast

Previous

Nov. 08

00:30

AUD

Employment Change 

 

14.5K

Nov. 09

01:30

CNY

Chinese CPI (YoY) 

1.9%

1.9%

 

01:30

CNY

Chinese PPI (YoY) 

-2.7%

-3.6%

 

01:30

CNY

Chinese CPI (MoM) 

0.1%

0.3%

 

05:30

CNY

Chinese Fixed Asset Investment (YoY) 

20.6%

20.5%

 

05:30

CNY

Chinese Industrial Production (YoY) 

9.4%

9.2%

 

05:30

CNY

Chinese Retail Sales (YoY) 

14.1%

14.2%

Government Bond Auction

Date Time Country 

Nov 08 9:30 Spain 

Nov 08 10:10 Sweden 

Nov 08 16:30 Italy  

Nov 08 18:00 US 

Nov 09 11:00 Belgium 

Nov 09 16:30 Italy

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