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
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • 🇲🇽 Markit Manufacturing PMI (FEB) Actual: 44.2 Previous: 43 https://www.dailyfx.com/economic-calendar#2021-03-01
  • In line with comments from Stournaras last week - ECB should accelerate PEPP purchases - No fundamental justification for a tightening of bond yields at long end - GC Should instruct board at March 11 meeting to fight unwarranted tightening of financing conditions
  • The Dollar is really trying again to spark a meaningful reversal yet again, but the market seems to have hardened its skepticism. I'll be watching this $EURUSD support (100SMA and trendline) closely these next 48 hours https://t.co/D1A5gthGdP
  • Heads Up:🇲🇽 Markit Manufacturing PMI (FEB) due at 15:30 GMT (15min) Previous: 43 https://www.dailyfx.com/economic-calendar#2021-03-01
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 0.87% Oil - US Crude: 0.72% Gold: 0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/I1pwjTdlEU
  • ECB''s Villeroy says so much as recent yield rise is unwarranted, ECB must react against it $EUR
  • ECB's Villeroy says the ECB is ready to adjust all instruments, include a depo rate cut if needed $EUR
  • Strong bounce from the $SPX via eminis here to give serious weight to support. Currently the best daily advance since Nov 5th but very early yet https://t.co/n5aR288k4g
  • 🇺🇸 Construction Spending MoM (JAN) Actual: 1.7% Expected: 0.8% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇺🇸 ISM Manufacturing PMI (FEB) Actual: 60.8 Expected: 58.8 Previous: 58.7 https://www.dailyfx.com/economic-calendar#2021-03-01
Yen Steady as Japanese Construction Underwhelms

Yen Steady as Japanese Construction Underwhelms

David Cottle, Analyst

Talking Points

  • Japanese housing starts expanded far more weakly in November than they had the previous month
  • However, this can be a volatile series
  • The real bad news was in overall construction orders, they fell sharply

The Yen was steady against the US Dollar on Tuesday after Japanese housing starts came in much weaker than they had in the previous month.

November’s total starts rose by 6.7%, well below October’s strong 13.7% gain for what is admittedly a volatile series. Perhaps more worrying for policymakers in Tokyo, overall construction orders fell 6% on-year in the same month. They had been up by more than 15% the month before.

There will be some element of seasonality in these figures, most of which have been reasonably strong through the summer and early fall. All the same however, this is another weak data release from Japan’s economy.

Data already released on Tuesday showed that both “core” consumer prices and household spending were very weak in November, although employment levels held up.

USD/JPY remains very much in holiday mode though, in a week stuck between the Christmas and New Year breaks. Australia and the UK are out for holidays too, which will see trading desks there thinly staffed if they are operating at all.

The pair got up to 117.36 after the data, from 117.34 before in a market that doesn’t seem in the mood for heroics. The US Dollar has pulled back a little from the 14-year highs seen last week, but that there should be some profit taking on such gains is hardly surprising over the holiday period.

There was one bright-ish spot in the form of November’s national Consumer Price Index excluding both food and energy costs. That rose 0.2% on-year according to the Bank of Japan, a rise that, while hardly a blockbuster, was at least as expected by the markets.

Another lacklustre run of Japanese numbers won’t do any harm to the thesis that Japanese monetary policy will remain loose even as the US Federal Reserve raises rates. That in turn should support USD/JPY as part of a general turn toward a perkier greenback.

Nowhere to go… USD/JPY

Yen Steady as Japanese Construction Underwhelms

Chart compiled using TradingView

How are we doing? Check out DailyFX analysts’ fourth-quarter forecasts.

--- Written by David Cottle, DailyFX Research

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

DISCLOSURES