Japan's Leading Index Modestly Misses But Shows Signs of Strength
Japan this morning released its leading and coincident index survey results. The former came in at 103.2 marginally missing expectations of 103.4 but rising smartly from 99.4 (revised down from 99.6) in May. The reading marked the highest showing since February of this year and is the 3rd consecutive rise for the index. While the latter, coincident index, came in at 108.6 also marginally missing expectations, of 108.7 and rising decently from 106.1 (revised down from 106.3) in May.
The steady rise in both survey’s in recent months confirms the sentiments of the Bank of Japan, who said yesterday that despite ongoing uncertainty from both the US and Europe the domestic economy is recovering steadily from the destructive earthquake and tsunami.
The yen was unmoved after the release as focus lies far away from domestic release after intervention in the markets by both the SNB and BoJ in the last few days and risk aversion came roaring back with a vengeance and led the Dow to hefty triple-digit (-512) losses yesterday. As if this wasn’t enough to digest for players the headline release of the week is still to come in the form of US NFPs later today. For a technical outlook for the yen pairs and crosses.
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