Skip to Content
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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Yen Steady After Extremely Perky Manufacturing PMI Data

Yen Steady After Extremely Perky Manufacturing PMI Data

David Cottle, Analyst

Talking Points:

  • The Japanese Yen was steady following the release of a strong set of manufacturing data
  • The Nikkei Purchasing Managers Index for the sector managed to outdo even the previous month’s near-three-year peak
  • The Japanese industrial sector seems to have started 2017 in some style

The Japanese Yen was only modesty stronger against the US Dollar on Tuesday, and not for long, despite an encouraging snapshot of Japan’s manufacturing sector.

The preliminary Nikkei Manufacturing Purchasing Managers Index (PMI) for February romped in at 53.5, a 35-month high and well above January’s 52.4. In the logic of PMIs any reading above 50 signifies expansion in the sector, a score below that means contraction.

Manufacturing output registered its fastest rate of growth for three years, coming in at 54.3, while business confidence levels were at record highs. The general aura of success seemed largely down to robust export orders and new product launches, as it was the month before.

USD/JPY was steady around after the figures, slipping very mildly to the 113.37 mark from 113.40 or so before the release. More broadly the market is focused on prospects of higher US interest rates based on the latest Federal Reserve commentary. This has favored greenback bulls, as have hopes for more expansive fiscal policy under President Trump, even if hopes is all they are at present.

Paradoxically, stronger Japanese data can sometimes count against the Yen, too. Given Japan’s huge national export machine, better manufacturing data can point to stronger global demand. This in turn tends to make Japanese investors search overseas for higher yielding investments than they can get at home.

Still heading higher, USD/JPY

Chart Compiled Using TradingView

Would you like live coverage of the biggest market-moving events? Why not check out the DailyFX webinars?

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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