The Japanese yen performed opposite to riskier currencies today, falling intraday but rebounding later. Whether it is due to US tariffs on Chinese goods kicking in or light volumes on markets due to holiday in the United States resulting in sharp and unpredictable swings, it looks like most currencies reversed their movement in the second half of the Monday’s session.
As for Japan’s macroeconomic data, it did not provide any major surprises. The Jibun Bank Japan Manufacturing Purchasing Managers’ Index slipped a bit to 49.3 in August from 49.4 in July, while experts had predicted it to stay basically unchanged. Capital spending of Japanese corporations increased by 1.9% in the April-June quarter from the same period a year ago, in line with expectations.
USD/JPY was up from 106.03 to 106.14 as of 17:03 GMT today but pulled back from the session high of 106.40. EUR/JPY was little changed at 116.45 after rallying to the high of 116.78 earlier.
If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.
