Despite the fact that US stocks continue to weaken, carry trades are stabilizing.
Japanese economic data was mixed with machine orders and the Eco Watchers Survey weaker than expected but money supply and bank lending accelerating. Bank of Japan Governor Fukui gave a speech last night and his comments are a perfect reflection of their lack of commitment to any specific monetary policy. Fukui said that monetary policy will be decided by economic development. With a Bank of Japan meeting scheduled for next week, this tone indicates that no changes will be made. In addition to BoJ, GDP is also expected to be released along with industrial production and CGPI.