June 30, 2009
The yen was the biggest loser in yesterday’s trading session as it fell sharply versus both the dollar and the euro. Positive data that came out of Japan gave a nice background for risk appetite to slightly pop its head back into the market.
Household spending surprised when it showed that spending increased by 0.3% instead of the 1.5% decline initially expected. Employee earnings were slightly less bad when it printed a 2.9% decline in earnings. The forecast was at -3%. The manufacturing purchasing mangers’ index shared the same somewhat positive tone. It came out at 48.2, an improvement from last reporting period’s 46.6.
The Tankan manufacturing index is due today at 11:50 pm GMT. This could potentially cause some waves in the foreign exchange market because it deals with Japan’s main industry – the manufacturing industry. The survey attempts to assess whether the country’s manufacturing industry is improving or worsening by using a positive/negative scale. A reading above 0 means that conditions are improving. Economists are expecting the survey to print -43.
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