Yen Gains as Japan’s Economic Data Beats Expectations

Today’s economic data released from Japan was very good, in contrast to reports released from other parts of the world. This allowed the Japanese yen to gain on its major peers.
Unlike macroeconomic indicators from China, Europe and the United States, Friday’s data from Japan was not only good but actually better than expectations. The flash Nikkei Flash Japan Manufacturing Purchasing Managers’ Index advanced from 50.1 in June to 51.4 in July, above the median forecast of 50.5. Trimming investor’s optimism about Japan, the International Monetary Fund warned in its report that “Japan’s public debt is unsustainable under current policies” and “a credible medium-term fiscal consolidation plan is needed.”
USD/JPY ticked down from 123.91 to 123.77 as of 14:54 GMT today. EUR/JPY declined from 136.08 to 135.71.

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