USD/JPY Gains as Japan PMI Print Sparks BoJ Easing Speculation
- USD/JPY rallied after Japan’s PMI Mfg figure disappointed traders
- 52.4 (JAN P) as opposed to the 52.8 expectation and 52.6 prior reading
- Worse-than-expected PMI figure may have sparked BoJ easing speculation
The Yen fell against the US Dollar as Japan’s Manufacturing PMI figure fell below the markets’ expectation. The January preliminary print was 52.4 as opposed to the 52.8 consensus forecast and the 52.6 prior reading.
Japanese 10-year government bond yields also fell with the currency which may indicate the markets’ belief that the data may alter the Bank of Japan’s policy decisions. An industrial sector growing at a slower pace than anticipated could delay the time it takes for the country’s CPI to reach its 2 percent target. BoJ Governor Kuroda stated that he believes the threshold will be reached near the second half of the 2016 fiscal year.