We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • My trading video for today: 'S&P 500 Can't Extend a Bullish Gap, Dollar Drop Cues $USDCAD, $NZDUSD Breaks' https://www.dailyfx.com/forex/video/daily_news_report/2020/05/27/SP-500-Cant-Extend-a-Bullish-Gap-Dollar-Drop-Cues-USDCAD-NZDUSD-Breaks.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/oSB23nRkfE
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇨🇦CAD: -0.05% 🇨🇭CHF: -0.13% 🇬🇧GBP: -0.15% 🇦🇺AUD: -0.19% 🇪🇺EUR: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/N60kYwUinJ
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.86% US 500: 0.85% FTSE 100: 0.42% Germany 30: 0.42% France 40: 0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/511qP0ytab
  • (Sentiment Weekly) Signals from IG Client Sentiment hint that the FTSE 100 and S&P 500 could have room for weakness ahead as the CAC 40 attempts to climb towards key resistance #SP500 #FTSE100 #CAC40 - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/05/27/FTSE-100-SP-500-CAC-40-Forecasts-Analyzing-Signals-in-Positioning.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5yVyQF6Jix
  • Japan compiles new stimulus package of 117.1 trillion #Yen, new spending in second extra budget is 31.9 trillion Yen -BBG citing relevant document
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/jTtYhKosIa
  • China's #Yuan falls 0.28% to 7.1560/USD which is the weakest since September 2019 -BBG
  • Silver has been beaten handily by gold in the rush to haven assets inspired by the contagion. However, the gold/silver ratio was rising steadily before this crisis and will probably continue to do so. Get your #silver market update from @DavidCottleFX here:https://t.co/00DiZn6XZS https://t.co/Ep6p4HgiAU
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.01% Silver: -0.28% Oil - US Crude: -1.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/uGnOx2D3QE
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.05% 🇨🇭CHF: -0.08% 🇨🇦CAD: -0.10% 🇪🇺EUR: -0.16% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/1fVY4dfYMN
Japan's Weirdest Economic Indicators

Japan's Weirdest Economic Indicators

2013-08-19 14:36:00
Boris Schlossberg, Technical Strategist
Share:

While the USDJPY rally remains lukewarm, some very unconventional indicators suggest that Japanese consumers are spending, which would help promote recovery and lessen the need for added QE measures.

Currency markets are essentially treading water as the economic calendar remains barren and many of the key players continue their holidays.

The only movement in today's Asian session came from USDJPY and the commodity dollars. USDJPY initially shot up to a high of 97.85 as the Nikkei rallied on the open, but the pair then sold off sharply on the correction in stocks, only to stabilize around the 97.65 level. USDJPY continues to trade in tandem with the Nikkei as it is back to being driven by risk flows.

See related: 5 Roadblocks for the USD/JPY Rally

Japanese policymakers are still debating the merits of a sales tax in September while the nation’s economic data remains mixed. Today, Japan reported its third-largest trade deficit on record as exports rose slightly less than forecast, printing at +12.2% versus 12.8% expected, while imports shot up 19.6% versus an expected gain of only 16.0%. This was Japan’s 13th consecutive trade deficit, highlighting just how much the country’s vaunted export-oriented economy has suffered.

On the other hand, in one of the more unusual economic measurements, Akiyoshi Takumori, chief economist at Sumitomo Mitsui Asset Management, noted that Japanese are eating the least amount of bean sprouts since 2009. Bean sprouts, which are viewed as a very cheap source of nutrition in Japan, see sales rise when consumers begin to budget. Takumori also notes that an increase in horse-racing tickets and a decline in suicides are signs of improved consumer sentiment, which should help the Japanese economy recover.

Still, with USDJPY stubbornly below the 100.00 mark, Japanese officials obviously feel frustrated with the lack of depreciation in the Japanese yen (JPY). A strong yen will not only dampen any hopes of a strong recovery in exports, but will also make it much more difficult to break the country's decades-long deflationary cycle. Therefore, it’s quite possible that Bank of Japan (BoJ) officials may decide to increase quantitative easing (QE) measures in the foreseeable future if they see no progress on the exchange-rate front.

With no data on the North American calendar, the glacial pace of trade may continue in today’s US session with currencies taking their cues from the equity market. For now, the US dollar (USD) continues to suffer from doubts regarding Fed tapering, and the markets may not get any additional clarity on that issue until the release of the latest Federal Open Market Committee (FOMC) meeting minutes this Wednesday.

By Boris Schlossberg of BK Asset Management

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.