Yen Gaining Rapidly Today

Yen Gaining Rapidly Today
Yen Gaining Rapidly Today


The Japanese yen gained a few points against the euro and the U.S dollar in the early hours of the trading session on Monday as the Tankan Manufacturing Index came out to be much better than the previous one. The index reading is 4 that shows a positive sign in the manufacturing sector of the Japanese economy where the sentiment has increased in the second quarter of this year. However, the Tankan Non-Manufacturing Index came out to be the same as expected with the reading of 12 as compared the previous quarter’s reading of 6.

Eur/Jpy is currently hovering at 129.37 where it failed to break the resistance level of 129.45; however, a move above this resistance level could take it to test 129.70 and further upwards.


The Chinese Manufacturing PMI data spotted the reading of 50.1 which was the same as expected. Although the manufacturing sector failed to boost up in previous month but still it managed to be on the positive side as it is above 50.0. Plus, the HSBC Final Manufacturing PMI didn’t show much signs of expansion in the manufacturing industry where it slightly fell against the previously noted reading.


The Australian AIG manufacturing index witnessed a sharp positive move from 43.8 to 49.6 for the previous month, showing a healthy sign for the overall manufacturing, production, inventories supply, and employment in the industry. Moreover, the Australian Prime Minister said that the Australia needs to continue to work on diversifying the economy in order to minimize the risk and expand the growth potential.

Based on the Chinese and Australian fundamentals release today, the Australian dollar gained around 50 points against the U.S dollar in the Asian session so far, where the pair remains bearish as long as it is below the critical level of 0.9235.


Later today in the European session, more manufacturing PMI releases are due for Spain, U.K, and Italy, along with the Italian and Euro zone’s unemployment rate. The majors may play in a mixed pattern until all these important fundamentals are released, where a good move is expected in the market once the ISM Manufacturing numbers are released for the U.S in early hours of the U.S session today.

The U.S Treasury Secretary, Jack Lew, emphasized on the importance of education, infrastructure and R&D in his speech today where he also highlighted the negative impact that spending cuts may have on the economy, while remaining optimistic about the overall U.S economy.