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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY
USD/JPY dipped to 129.75 late in NY trading, amid a broad USD correction, but recovered back above 130.00 by the close and sits around 130.10 currently. The pair continues to respect recent ranges, with Tuesday session highs coming in just above 130.50.
- This isn't too far from the 20-day EMA (130.57), which continues to present a cap for the pair, although we are threatening to move out of downtrend channel resistance that has been in place since October last year.
- USD/JPY continues to follow yield differentials fairly closely, see the chart below of spot against the 10yr swap differential with the US. The leaves the firm focus on Wednesday's Fed decision.
- Locally, the data calendar just has the final manufacturing PMI on tap today, the prior reading was 48.9. Yesterday's data was mixed, although the jobs data raised the question of whether it was strong enough to drive meaningful wage gains.
- The Ministry of Finance upgraded the economic assessment for 5 of 11 regions in the country yesterday (the other 6 were left unchanged), while stating overall economic activity is picking up modestly.
Fig 1: USD/JPY & US-JP 10yr Swap Differential
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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