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
  • ETH now breaking below its 200DMA - May 23rd low at 1736 https://t.co/WOr1tveDDU
  • BoE's Haskel (Dove) has been appointed for a second term Catherine Mann appointed to the BoE's MPC and will replace Vlieghe who is leaving the MPC in August
  • 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
Japanese Yen Weaker, China PMI Lifts Risk Appetite

Japanese Yen Weaker, China PMI Lifts Risk Appetite

David Cottle, Analyst

Japanese Yen, Bank of Japan Tankan, China PMI Talking Points:

  • Chinese manufacturing finally expanded but not by much and export orders remain weak
  • Large Japanese firms were gloomy in the first quarter
  • Small firms were more so

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

The Japanese Yen slipped on Monday following some conflicting economic data releases from Asia’s two largest economies. These included better news from China's manufacturing sector which has boosted risk appetite.

The Bank of Japan’s Tankan survey for the year’s first quarter found large manufacturers gloomier than expected. Their sentiment index came in at 12, below both the 13 expected and the previous quarter’s 19. The last quarter’s reading was the lowest since the first three months of 2017.

Large manufacturers’ outlook slipped further, to record a score of 8, when the previous print was 15. Smaller firms were gloomier still, with only large, all-industry capital expenditure scoring a beat. Its index came in at 1.2%, which was better than the 0.7% expected but well below the previous quarter’s 14.3%.

The Japanese Yen was weaker on this release, but, as there is nothing whatever here to suggest any change in ultra-loose monetary policy from the BoJ, there wasn’t far for it to go.

US Dollar Vs Japanese Yen, 5-Minute Chart

Chinese Numbers Picked Up, But From a Low Base

However, these numbers follow Sunday’s news that Chinese manufacturing picked up pace in March. The Official Purchasing Managers Index came in at 50.5. That was above both February’s three-year low of 49.2 and, crucially, the 50.0 point which separates expansion from contraction. March was the first month in four to achieve that an above-50 score.

It wasn’t all good news though. Export orders declined for a tenth straight month, but the non-manufacturing PMI ticked up to 54.8 from 54.3.

All up these data still paint quite a bleak picture of Asian and, perhaps, global economic prospects, given the bellwether status of both the Chinese and Japanese economies. There may be some hope that Chinese manufacturing is bottoming out, but both export titans are clearly feeling the global-slowdown chills and a trade settlement between the US and China can hardly come soon enough- assuming it comes at all.

The Japanese Yen is starting to weaken again against the US Dollar on its daily chart, after a period of strength in March as markets assessed the Federal Reserve’s more cautious stance on raising interest rates.

Now those same markets are starting to realize that such caution will be universal, and that the US has higher rates than most anyway, certainly much higher than Japan’s.

USD/JPY has bounced at the second, 38.2% Fibonacci retracement of this year’s rise- 110.07.

US Dollar Vs Japanese Yen, Daily Chart

It is now flirting with an upward break of the first retracement, which comes in at 110.86.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES