Mixed day for the yen, as it edged higher versus the euro but took its bumps and bruises versus the pound. EUR/JPY closed 14 pips lower at 96.90, while GBP/JPY rose 21 pips to finish at 123.70.
No data on tap from the Land of the Rising Sun, but do keep an eye on more developments from the euro zone. We’re starting to hear more rumblings about the European debt drama, which could eventually trigger a wave of risk aversion that benefits the yen.
Guess who has a huge letter “L” on its forehead? That’s right, it’s the Japanese yen! The lower-yielding currency was a huge loser in yesterday’s trading as risk appetite improved in the forex market. USD/JPY jumped up from its 78.87 open price to close at 79.31 while EUR/JPY ended the day just one pip below the 78.00 handle.
There were no reports released from Japan yesterday, leaving the yen at the mercy of risk sentiment. Unfortunately for the lower-yielding currency, traders’ spirits were boosted by a fresh wave of good news, particularly from the euro zone. As it turns out, Spanish bond yields dropped to their lowest level in two months while German Chancellor Merkel pledged to do whatever it takes to save the euro.
Japan’s economic schedule is still empty for today which means that yen pairs could still move to risk sentiment’s whim. Unless we hear of any bad news from the major economies, the yen might keep losing ground to its counterparts as risk appetite could stay in the markets before the week comes to a close.
The great thing in forex is that even though you’ve struck out more than 3 times, you’re still not out! Last Friday, the yen marked its fifth losing day against the dollar as positive data came out of the U.S. USD/JPY, which began the day at 79.31, closed out the U.S. trading session at 79.55.
The major market mover last Friday was the University of Michigan consumer sentiment survey. It came in at 73.6, which was slightly higher than the 72.3 the market had initially expected. The better-than-expected reading provided a lot of support to the dollar.
No red flags on Japan’s economic calendar this week. This means the yen will probably get its direction from things happening in other major economies like the U.S.
Just like the rest of the market, yen crosses pretty much stayed in range as there was no real hard-hitting news to hit the airwaves. EUR/JPY finished 19 pips lower at 98.05 while GBP/JPY closed at 124.74, also 19 pips below its opening price.
We could be in for another snoozefest, as the only data coming out from Japan today is trade balance figures at 11:50 pm GMT. Expectations are that the monthly deficit for July to be at 460 billion JPY. If the data shows that exports are continuing to shrink, it would give the Bank of Japan more reason to intervene and weaken the yen.
The yen showed us exactly why the saying “you win some, you lose some” came to be as it strengthened against the dollar, Swissy, and Loonie, but weakened against the euro, pound, Aussie and Kiwi. Will it put up more consistent results today?
The recently released July trade balance report came in better than expected, but it really didn’t do much to get the yen moving. Japan’s deficit widened from .32 to .33 trillion JPY instead of expanding to .46 trillion JPY, as most economists had predicted.
The main culprit behind Japan’s deficit? Europe’s weakness and China’s slowdown! Apparently, soft demand from these two economies (two of Japan’s largest trading partners) did a number on exports last month. Yeouch!
Looking at the economic calendar, it seems like we’ll have to chew on that bit of news for a while as Japan won’t be publishing any reports today. In the meantime, I suggest you monitor risk sentiment as it could be the deciding factor on whether the yen will rise or fall today.
Aha! It looks like the yen was able to tap its inner ninja in yesterday’s trading, sneaking pips away from its counterparts despite negative data. USD/JPY closed the day lower at 78.54 after opening at 79.24. Meanwhile, EUR/JPY finished the day 42 pips below its opening price at 98.34.
It was reported yesterday that Japan incurred a trade deficit of 517.4 billion JPY in July, worse than an expected reading of 270 billion JPY. But it seemed like traders easily shrugged off the negative data as concerns about Europe lingered and the FOMC showed that the Fed is pretty eager to launch more stimulus measures.
Will the yen extend its gains today?
With our forex calendar blank for reports from the Land of the Rising Sun, the answer to that question will probably depend on market sentiment. So be sure you keep tabs on the reports we have on tap for the yen’s counterparts, ayt? Peace out!
Due to the absence of market-moving data, the yen’s price action yesterday was as mixed as a bag of Trailmix! While the yen ended the day higher against the dollar and the pound, it fell short versus the euro.
The Corporate Services Price Index (CSPI), which measures the change in the price of services purchased by corporations, was released earlier today. It was forecasted to show a decline of 0.2% and it came in as expected.
No economic data scheduled for release from Japan, and with the weekend fast approaching we could see very little movement from the yen. Let’s see how today plays out.
USD/JPY was finally able to recover last Friday after it had lost for 4 consecutive days. The pair closed at 78.70, 25 pips higher from where it had begun the day. Is a bullish reversal in the works?
Judging from the trend, it looks like the recent move up was mainly a retracement, and not yet a true reversal. There has been no significant change in the fundamentals, and traders could have simply been taking profit.
No red flags on Japan’s economic calendar today, but there are a bunch of important tier 2 reports scheduled for release on Thursday and Friday. On Thursday, watch out for Japan’s retail sales report. On Friday, the country’s inflation figures and unemployment rate report will be on focus.
Due to the absence of economic catalysts, most of the U.K. in holiday, the yen was completely directionless yesterday. It traded mixed across the board, gaining slightly versus the euro and pound but losing against the dollar.
Japan’s economic cupboard today will be completely empty again. This means that the yen will probably be mostly driven by events happening in other major economies.
Keep a close eye on the CB Consumer Confidence survey that will be released in the U.S. as it could indirectly have an effect on the yen’s price action. If it comes in better-than-expected, the yen could once again sell-off versus the dollar.
With barely any economic data from Japan, the yen showed mixed price action against its counterparts. USD/JPY fell by 24 pips to 78.52, but EUR/JPY capped the day at 98.69 after hitting an intraday low of 97.89.
Aside from the hoopla about the Fed’s QE3 decision this weekend and the ECB’s plans on its bond-buying program, the yen bulls and bears traded on the BOJ’s surprising decision to cut its economic growth assessment for the first time in a year.
According to the central bank, the underperformance of the U.S. and Chinese economy, as well as the onslaught of the euro zone debt crisis, have taken its toll on the world’s third largest economy. For investors, this is a huge change from its previous release where the BOJ had said that the economy is growing moderately. Yikes!
Only the retail sales data at 11:50 pm GMT today is scheduled for release in the Land Down Under, so you might want to pay attention to any other news that might affect the demand for the low-yielding yen.
The yen’s scorecard for yesterday’s trading was as mixed as a bag of nuts. While it was able to score an 8-pip win against the euro, it gave up 17 pips to the dollar.
Although there wasn’t any economic report released from Japan, there were plenty of remarks about the yen’s strength. The country’s vice finance minister for international affairs said outright that the yen’s strength since the outbreak of the 2008 financial crisis is hampering the economy.
Of course, that got talks about another BOJ intervention swirling! With that said, make sure you keep an ear out for more comments from Japanese officials in today’s trading.
Also, if you plan on trading the yen, keep in mind that the retail sales report for July printed a 0.8% contraction and disappointed the forecast which was for a 0.1% uptick. The currency rallied following the release of the negative figure, but be on your toes! Who knows, traders may soon change their mind about the yen.
When risk is off, the yen’s game is on! The Japanese currency dominated its major counterparts yesterday as risk sentiment favored safe haven currencies. It snatched 40 pips from the British pound, while gaining 23 pips against the euro. Can we expect more of the same today?
It seems all is not well in the 3rd largest economy in the world. Retail sales were worse than expected last month, showing a 0.8% year-on-year decline instead of the tiny 0.1% slide that most had predicted. As it turns out, bad weather had a lot to do with it, though some say that consumers kept from spending because they got smaller summer bonuses. That’s enough to burst anyone’s bubble!
Earlier today, the reports surprised to the upside as household spending data revealed a 1.7% increase (versus forecasts which called for a 1.2% uptick). Meanwhile, the unemployment rate held steady at 4.3%, just as the core CPI printed a 0.3% decline in prices as expected.
No more reports today, but do keep a close eye on developments in Jackson Hole. Ben Bernanke is set to deliver a speech, and if he disappoints the market with no hints about further easing, it could lead to another yen rally.
The Japanese yen had a mixed performance last Friday as it gained against the U.S. dollar and the Aussie but lost ground to the pound, euro, and Loonie. Will it be able to find a clearer direction today?
Risk sentiment got tossed this way and that, leaving the yen confused about which direction to take last Friday. As it turns out, Bernanke disappointed the markets by failing to set a clearer road map for the Fed’s monetary policy stance, causing the Greenback to give way to the Japanese yen. Meanwhile, S&P’s downgrade of Catalonia and Bankia’s need for capital injection triggered a quick run of risk aversion towards the end of the day.
There aren’t any major releases due from Japan this week but make sure you mark your schedules for BOJ Governor Masaaki Shirakawa’s speech at 3:40 am GMT on Thursday. As central bank, I’m pretty sure he could have a lot to say regarding monetary policy in Japan. Stay on your toes!
Due to the absence of market-moving events, the yen lacked direction yesterday and simply moved within a relatively tight range. It topped out at 78.41 and found a bottom at 78.20.
There were some data releases, but none of them were particularly important. The Capital Spending report showed that new capital expenditures by businesses rose 7.7% while the Monetary Base report showed a 6.5% increase. Lastly, Average Cash Earnings were reported to have fallen 1.2%, four times worse than forecast.
No economic reports scheduled to be published today, so the yen’s price action could be similar to yesterday. Watch out for the previous day highs and lows, as they could serve as today’s inflection points.
The yen sure loves to mix it up, doesn’t it? The Japanese currency was able to end the day higher against the euro and Aussie but it chalked up some losses against the U.S. dollar, pound, and Loonie. Will it find a clearer direction today?
Japan didn’t release any major reports yesterday, and this was probably the reason for the yen’s mixed performance. The only Japanese report released was the average cash earnings which showed another annualized decline for July.
There are no reports on Japan’s schedule today which means that the yen might take its cue from risk sentiment. Stay on your toes!
As usual, USD/JPY was a ghost town as it barely slipped 4 pips to finish at 78.39. On the other hand, EUR/JPY continued to consolidate between 99.00 and 98.00, ending the day 19 pips higher at 98.72. Will these pairs finally bust a move today?
No numbers were released from Japan yesterday, but Bank of Japan member Miyao had a thing or two to say to break the silence. He said that Japan is facing serious headwinds in its recovery, and he’s worried that exports may not rise enough to carry the burden of growth.
But what’s most notable is that Miyao mentioned that they must act and take “bold steps when necessary.” Hmm… Could he be hinting at a future intervention? After all, a direct market intervention could help Japan’s exports industry pick up steam.
The only thing on the calendar for Japan today is a speech from BOJ Governor Shirakawa at 3:40 am GMT. After Miyao’s soft jawboning yesterday, it’ll be interesting to hear what the central bank head has to say. If he join Miyao and hints at more action in the future, it could lead to a yen sell-off, so stay tuned!
Geronimoooo!!! The yen got triple roundhouse kicked by its counterparts yesterday thanks to a broad-based rally in high-yielding currencies. EUR/JPY rocketed by 98 pips, while GBP/JPY enjoyed a nice 110-pip boost. Why did the yen react so strongly against its counterparts?
One possible reason is that there were no economic reports scheduled for release in the Land of the Rising Sun. With Japan’s docket empty for the day, traders found it easy to dump the yen once risk appetite surged in markets.
If you haven’t been keeping tabs, you should know that it was a combo of good economic data from the U.S. and an optimistic bond-buying program by the ECB that inspired a broad-based risk rally.
Only the leading indicators data at 5:00 am GMT is scheduled for release today, so you might want to pay attention to any possible market-moving reports from the other major economies. More specifically, keep your eyes on the big U.S. NFP report coming up at 12:30 pm GMT, which could determine if the Fed is launching its QE3 program next week.
While the yen took a few heavy blows from the euro, it dealt the dollar a harsh beating as well. EUR/JPY ended 53 pips higher at 100.23, just as USD/JPY slipped 63 pips to 78.27.
While we did see a strong risk rally (which usually results in big gains for yen crosses), USD/JPY’s enormous drop sort of took the edge off yen sellers and kept yen crosses from lifting off.
As for economic reports, nothing major was released last Friday, but earlier today we got a look at a couple of noteworthy numbers.
Japan’s current account surplus narrowed more than expected as it slimmed down from .77 trillion JPY to .34 trillion JPY (instead of .39 trillion JPY, as forecasted). Apparently, slower exports are to blame for this downside surprise. If this keeps up, I wouldn’t be surprised to hear the BOJ jawbone some more!
Also, we got a look at the final GDP for Q2 2012, and boy was it ugly. It turns out that the 0.3% growth that the government had estimated for last quarter was a bit too generous… the economy only expanded by 0.2% according to its final estimates! Capital spending was weak in Q2, as Japanese companies kept their hands in their pockets due to external economic threats stemming from the euro zone debt crisis and threats of a global economic slow down.
No more reports from Japan for the rest of the day but do keep an eye on risk sentiment as it will probably be the key driver for yen price action today. Good luck, fellas! Start this week on a strong note!
With a slight wave of risk aversion hitting the market, the yen got a nice boost and finished ahead of the euro and pound in yesterday’s trading matches. EUR/JPY dropped 38 pips to end at 99.84, while GBP/JPY finished 23 pips lower at 125.12.
Earlier, the BSI manufacturing index came in slightly better than expected, printing a reading of 2.5, after it was projected to come in at 6.1. This indicates slight optimism from large Japanese manufacturers, as this marks the first time in eight months that the index came in above 0.0.
Early tomorrow, we get more second-tier data in the form of core machinery orders. Word on the street is that companies spent 1.8% more on machines and equipment last month. If the report comes in worse than expected and indicates that companies are spending less on big ticket items, it could indicate concern about future sales growth, as companies wouldn’t normally spend on machinery unless they felt that orders would pick up.
The Japanese yen’s performance was as mixed as a bag of M&Ms as it ended higher against the U.S. dollar, Loonie, and pound but lost ground to the rest of its major counterparts. What’s driving the Japanese yen these days?
Japan released a couple of medium-tier reports yesterday, both of which came in better than expectations. BSI manufacturing index, which tracks the business sentiment among large manufacturers in Japan, came in at 2.5 for the third quarter of 2012. This was a significant improvement over the -5.7 reading, which indicated pessimism, for the previous quarter. M2 money stock, which shows the change in domestic currency in circulation, posted a 2.4% increase which was better than the estimated 2.3% uptick.
Today, Japan released a few low-impact reports during the Asian session and the data was somewhat mixed. Core machinery orders saw a 4.6% jump in July while tertiary industry activity suffered a 0.8% drop, worse than the estimated 0.4% decline.
No other reports are due from Japan for the rest of the trading sessions today so make sure you keep close tabs on market sentiment to figure out where the yen is headed. Don’t forget that Japanese finance officials, along with several market participants, are watching USD/JPY like hawks since it is currently treading close to intervention levels.