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- Thursday, 15 October 2009 11:47:02 GMT Overnight Interest Rate Update 10.15.09
- Thursday, 15 October 2009 05:24:16 GMT Sterling Finally Plays Catch-Up (Morning Slices)
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- Thursday, 15 October 2009 08:28:00 GMT USD Graphic Rewind
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- Wednesday, 14 October 2009 13:08:21 GMT U.S. Retail Sales Fall Less Than Expected On Broader Demand
- Wednesday, 14 October 2009 11:24:58 GMT Overnight Interest Rate Update 10.14.09
- Wednesday, 14 October 2009 11:14:50 GMT European Industrial Production Rises, Adds Too Recovery Signs
- Wednesday, 14 October 2009 10:23:33 GMT Greenback Finds No Relief in Overnight Trade (Morning Slices)
- Wednesday, 14 October 2009 04:10:16 GMT UK Claimant Count Rate Holds Flat; Jobless Claims Falls to 20.8K
Japanese demand shrank in August as the Tertiary Index fell -1.4%, the worst reading in 6 months. The world's second-largest economy is now formally in recession having seen overall economic growth print negative in the first and second quarters of this year. Consumers are acting accordingly, trimming back spending in preparation for the leaner period ahead. Wage growth has been on a steep downtrend since the beginning of the year, easily outpacing any savings that consumers are seeing from sliding crude oil prices from mid-July. On balance, the Yen exchange rate has largely decoupled from shaky Japanese fundamentals to fall in with trends in risk sentiment. Indeed, the VIX Index measure of volatility is currently 83% inversely correlated with EURJPY.
EURJPY Spot vs. VIX Index:
Source: Bloomberg
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