Japanese Yen Little Changed On Slower PMI, Remains a Safe-Haven
- Japan’s preliminary Manufacturing PMI printed 50.9 in September vs 51.2 expected
- The Japanese Yen was left little changed against the US Dollar after the release
- Following the data, the Yen gained as S&P 500 and Nikkei 225 extended losses after hours
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The Japanese Yen was little changed versus the US Dollar in morning trade after the nation’s preliminary PMI figures for September crossed the wires. The 50.9 reading fell short of the 51.2 print forecasted, indicating the county’s manufacturing sector expanded at its slowest pace since June. That said, this reading marks the fifth straight month of expansion – compared China’s recent update which signaled a seventh consecutive contraction. A reading above 50 indicates expansion while a reading below 50 shows contraction.
So far the Bank of Japan shows no signs of adding or reducing its monthly government bond purchases of 80 trillion Yen. In addition, the markets are not expecting any rate cuts or hikes over the next 12 months. Last week, the central bank’s governor Kuroda said that the economy is likely to grow in the third quarter. Today’s release, while weaker than expected, did show a sign of expansion.
Looking ahead, the Japanese Yen continues to be a source of safety as Currency Analyst James Stanley points out. Following the PMI release, both S&P 500 and Nikkei 225 (CFDs and Futures) declined. Simultaneously, the USDJPY dipped below 120.00 falling more than 0.24 percent.
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