EUR/JPY Fundamental Analysis July 2, 2013 Forecast The EUR/JPY is trading at 129.29 gaining a few pips this morning as the JPY continues to weaken on hopes that more stimulus might be coming from the BoJ to help push the economy to inflation. Data is beginning to show results from Mr. Kudora’s injection in April and may promote the BoJ to add to their current purchases to help the economy continue to reverse. the U.S. Federal Reserve has offered a timetable for scaling back its quantitative easing regime, the Bank of Japan may face calls for additional easing, some observers say. The Fed’s exit from quantitative easing could trigger the reversal of global money flows, fueling stock market drops and interest rate surges, while the BOJ holds the course with its own QE program, analysts said. The BOJ kicked off a radical monetary easing campaign in April to double Japan’s monetary base with the goal of stoking 2 percent inflation in about two years. The euro is trading on a positive note, but more on shifts in sentiment as there has been little in the way of news flow and economic data to support much movement, but every day that passes with no crisis jumping into the markets is another day towards recovery as the ECB continues to promote the health of the eurozone. The ECB will meet on Thursday and markets should remain quiet until Mr. Draghi’s comments after the ECB decision.
Posted on: Tue, 02 Jul 2013 04:35:19 +0000