USD/JPY tilts lower during the Asian session

2019-06-12 08:58:48 GMT (Economies.com)
USD/JPY tilts lower during the Asian session

US dollar fluctuated lower in a tight range during the Asian session, to bounce in the second session from its highest since May 31 against the Japanese Yen,following economic data released by the Japanese economy, the third largest economy in the world and on the threshold of developments and economic data expected today by the US economy, the world's largest economy.

 

As of 05:51 GMT, USD/JPY fell 0.06% to 108.46 compared with the opening levels of 108.52 after a low of 108.44 and a high of 108.57.

 

We followed the Japanese economy reveal of its inflation data, with the release of the producer price index, which is a preliminary indicator of inflationary pressures that showed a contraction by 0.1% versus April's 0.4% growth, worse than expectations of a zero rate, while the annual reading for the same index showed that growth slowed to 0.7% in line with expectations versus 1.3% in the previous annual reading for April.

 

We also followed the reading of the Machinery Demand Index, which showed that growth accelerated to 5.2% from 3.8% in March, in contrast to expectations of a 0.8% decline. While the annual reading of the index increased by 2.5% compared to a decline of 0.7% in the previous annual reading for March, and also exceeded expectations of a widening of the decline to 5.3%.

 

Japanese Prime Minister, Shinzō Abe, yesterday expressing his confidence in the Bank of Japan, explaining that he will leave the monetary policy decision to the Japanese central bank's jurisdiction, adding that if the risks to economic growth are high, the government will implement flexible macroeconomic policies. In the same context, Japanese Minister of Finance, Tarō Asō, also noted yesterday that there is no change in plans to raise the sales tax by next October.

 

On the other hand, the markets are currently looking for the US economy to release inflation data with the release of the consumer price index, which may reflect a slowdown in growth to 0.1% compared to 0.4% in April, while the core reading of the same index may show growth acceleration to 0.2% Compared to 0.1%. The annualized reading may show growth slowing to 1.9% versus 2.0%, while the core annual reading may reflect a 2.1% growth stability.

 
 
 
  Symbol Last Change Chg.%
1.1052
-0.0023
0.2036%
1.2531
0.0048
0.3841%
17.840
0.389
2.228%
58.815
3.921
7.144%
64.40
0.80
1.26%
1501.075
12.095
0.812%
 
 
Live Forex Updates