Japanese Yen Crosses Tumble as Dow Erases Earlier Gains

The Japanese Yen crosses or carry trades are all weaker today as the Dow erases its early morning gains.

Stocks continued to suffer on the back of troubles in the housing market and lingering concern about the turmoil in Pakistan. There were a lot of Japanese economic data released last night and on balance, they were more Yen positive than negative. Core consumer prices on a national level were stronger than expected along with the unemployment rate and retail sales. Industrial production and earnings also fell less than expected. The only piece of data that was Yen bearish is the industrial production report. In the week ahead, expect the Dow to continue to drive movements in the Japanese Yen as there are no Japanese economic data on the calendar.