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.

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
Bearish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Canadian #Dollar Forecast: $USDCAD Bears Fail at Support- March Levels - https://t.co/XkyFns8odx https://t.co/8Q4Tu0viz0
  • I feel the LaserEyes trend is a more effective social spread because of the visual impact. Kind of disappointed the community hasn't gotten a more tangible visual cue for BTD / BTFD. Or maybe there is one and I'm just behind the trend....which happens a lot recently
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.87% 🇨🇦CAD: 0.78% 🇳🇿NZD: 0.45% 🇪🇺EUR: -0.19% 🇯🇵JPY: -0.20% 🇨🇭CHF: -0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/U3yK9hfDka
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: -0.35% Oil - US Crude: -0.37% Gold: -0.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7dEtLof6us
  • The price of oil extends the series of lower highs and lows from the February high ($63.81) ahead of the (OPEC) (JMMC) meeting on March 3. Get your #crudeoil market update from @DavidJSong here:https://t.co/6hjIL77koa https://t.co/h2gQHVFvaB
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.57%, while traders in GBP/JPY are at opposite extremes with 66.37%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/nb2pDL6nuW
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.38% France 40: 0.24% Germany 30: 0.23% US 500: 0.00% Wall Street: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VRWeokQ9gk
  • Schumer says Senate will take to stimulus bill this week - BBG $USD
  • The Canadian Dollar has failed a break below a critical support confluence we’ve been tracking for months now and leaves the bears vulnerable while above. Get your $USDCAD market update @MBForex here:https://t.co/YTFgmidyov https://t.co/xZcofFQWJP
  • AUD/USD sharply higher following last week's decline $AUDUSD https://t.co/cxrl9O6Jvi
Yen Weakens Again; Machine Orders Remain Soft

Yen Weakens Again; Machine Orders Remain Soft

David Cottle, Analyst

Talking Points:

  • Japanese machine tool orders came in weak, again, but much less so than the previous month
  • The print didn’t look great for manufacturing capex in Asia’s number-two economy
  • USD/JPY continued to rise, but it’s hard to pin that on the data

The Yen weakened further against the US Dollar on Monday, with its focus perhaps elsewhere than local data despite an underwhelming showing for Japanese machine tool orders.

Orders are a reasonable proxy for manufacturing sector capital spending ahead. They fell 5.6% on-year in November. At face value this was an unambiguously weak piece of data, but the devil in the details revealed it to be a much better print than last month’s, when orders slipped by a whopping 8.9%.

Still the Yen fell after the numbers, with USD/JPY up to 115.65, making new ten-month highs. However, the greenback has been looking like a currency which wants to rise all morning as markets focus on this week’s interest rate decision from the US Federal Reserve. A modest increase in the Fed Funds target rate is expected, and investors are keen to gauge from the Fed’s tone how many more there might be.

It’s been a busy morning for Japanese data, with consensus-smashing prints from both corporate goods prices and machine orders, both of which failed to support the currency.

The picture was a bit less rosy for the tertiary industry sector. Activity there rose by 0.2% on the month in November. That was slightly less than the 0.3% markets had been looking for, but rather better than October’s 0.3% fall (revised down this month from 0.1%).

The tertiary industry index is released by METI and gauges changes in output, primarily in those parts of the service sector which cater to domestic demand. Think catering, wholesalers, real estate and so on.

The Yen has been under pressure once again this session, although it’s not clear that local data have had a lot to do with the overall trading picture. The perceived global reflationary consequences of Donald Trump’s US Presidency have seen gains for both Japanese bond yields and the Nikkei through Monday.

USD/JPY: A pair which wants to go higher

Yen Weakens Again; Machine Orders Remain Soft

Chart compiled using TradingView.

Would you like to know more about trading currencies or commodities? Check out the DailyFX webinars.

--- Written by David Cottle, DailyFX Research

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

DISCLOSURES