At the beginning of the third quarter, the USD is once again interesting for investors, thus making the USD/JPY pair retreat.
On Monday morning, the Japanese Yen found itself under the pressure of the USD. The current quote for the instrument is 112.59.
This morning, Japan published the Tankan readings, which describe the status of all major industries and businesses. The Tankan Large Manufacturers Index increased up to 17 points in the second quarter after being 12 points in the previous one and against the expected reading of 15 points. The Tankan Large Non-Manufacturing Index expanded up to 23 points over the same period of time after being 20 points in the second quarter. However, it was worse that the market expected (up to 24 points).
The comments from Tankan say that the current sentiments in the manufacturing sector are pretty close to the three years’ highs. The manufacturing sector has been improving for three quarters in a row and the non-manufacturing one – for two.
For Japanese economy, which is strongly dependent on the export and external conditions, the statistics was positive. The manufacturing industry heavily relies on the external demand and exporters always contributes some part of their profit to the country’s budget.
The Final Nikkei Manufacturing PMI increased up to 52.4 points in June. The Preliminary reading was 52.0 points. This is another good signal, which may later support the country’s GDP.
So, the week started with a small growth of the USD. On Tuesday, the market might be pretty calm due to the celebration of the Independence Day in the USA, but later investors’ attention is expected to be focused on the minutes of the latest Fed meeting.
RoboForex Analytical Department