[ForexGump]

The Tankan index, which is one of the most-awaited major economic reports from Japan, wasn’t as strong as expected. The manufacturing index rose from -58 to -48 and failed to meet expectations at -43. Meanwhile, the non-manufacturing index climbed from -31 to -29, which is slightly lower than the consensus at -26. Consolidation was seen among JPY crosses in anticipation of this report. However, no large spikes took place after the release of the weaker-than-expected numbers.

Only the nation’s monetary base is due today. This report, which measures the change in the total quantity of domestic currency in circulation and in banks’ deposits, is not particularly market-moving. However, it is correlated with interest rates since an increasing supply of money leads to additional spending and investment. Later on, this contributes to inflation which may cause the central bank to raise interest rates. An increase of 8.1% is expected to follow the previous reading of a 7.9% uptick.