The Japanese yen rose today, retaining its place as one of the strongest currencies on the Forex market, despite underwhelming domestic data. That was not particularly surprising, though, as the currency often ignores domestic data in favor of other fundamentals.
The Nikkei Flash Japan Manufacturing Purchasing Managers’ Index fell from 53.0 in June to 51.6 in July, whereas analysts had predicted a small increase to 53.2. Annual consumer inflation reported by the Bank of Japan slowed to 0.4% in June from 0.5% in May instead of accelerating to 0.6% as analysts had predicted.
Yet the Japanese currency dismissed the negative data, preferring to concentrate on the same bullish factor as yesterday — the rising yields for 10-year Japanese government bonds.
USD/JPY fell from 111.33 to 111.14 as of 10:41 GMT today. CHF/JPY declined from 112.18 to 111.85.
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