News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine success. Learn about the three types of trading exit strategies here: https://t.co/muYkTNXH7s https://t.co/NegC8Mfbq8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 85.96%, while traders in GBP/JPY are at opposite extremes with 68.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/T9v0aosH41
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-22
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/2Msf0Dma64
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: -0.01% Silver: -0.05% Oil - US Crude: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/kfGYnBnPzL
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.09% 🇳🇿NZD: -0.13% 🇨🇦CAD: -0.17% 🇨🇭CHF: -0.28% 🇬🇧GBP: -0.40% 🇦🇺AUD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/uguqoq37JO
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.17% Wall Street: -0.09% US 500: -0.12% France 40: -0.16% Germany 30: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/D92F7Uappm
  • Russian Energy Source says good timing to further ease oil cuts in August, despite expected Iranian oil export return as market is in deficit https://t.co/zlm46bMcWN
  • Citi have lowered their 3-month gold target by $50/oz to $1750 - Maintains 12-month forecast of sub $1600 $XAU
  • ECB sources - ECB policymakers still some way apart on new inflation strategy, but hope for agreement by september - One source said there was a general consensus that "ECB could tolerate inflation above 2%" $EUR
Yen Unmoved as Japanese Manufacturing Continues to Contract

Yen Unmoved as Japanese Manufacturing Continues to Contract

Daniel Dubrovsky, Strategist

Talking Points

  • Japanese Yen little changed against its major counterparts
  • Preliminary Nikkei Manufacturing PMI printed 49.0 in July
  • The data likely had minimal impact on BoJ policy speculation

Having trouble trading the Japanese Yen? This may be why.

The Japanese Yen was little changed against its major counterparts after a manufacturing PMI reading crossed the wires. Heading into the announcement, the anti-risk Yen was strengthening as Nikkei 225 futures declined. The preliminary reading came in at 49.0 in July versus 48.1 in June, showing that Japan’s industrial sector contracted at a slower pace. A reading above 50 indicates expansion in the sector while a level below 50 shows contraction.

Today’s PMI figure continues to move away from May’s record low, as can be seen on the chart below. However, the data’s recorded history – which is tracked by Bloomberg – goes back as far as July 2013. The nation’s industrial sector also contracted for 4 consecutive months. With that in mind, the data likely had a minimal impact on Bank of Japan policy expectations which could explain why the USD/JPY was so mute.

The BoJ’s main concern has been the persistent threat of deflation. In its most recent monetary policy decision, the central bank lowered its outlook for near term inflation expectations, but raised them from a down-the-road point of view. This is likely the reason why the Japanese Yen showed a tepid reaction towards recent deflation readings.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a reading of 1.2 following the announcement, meaning that for every short USD/JPY position, there are 1.2 long exposures. The SSI is a contrarian indicator at extreme levels, implying further USD/JPY weakness ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

Yen Unmoved as Japanese Manufacturing Continues to ContractYen Unmoved as Japanese Manufacturing Continues to ContractYen Unmoved as Japanese Manufacturing Continues to Contract

Data pulled from Bloomberg

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

DISCLOSURES