Economics
Japanese Yen Mixed amid Signs of Economic Slowdown
The Japanese yen was mixed today despite the relatively negative sentiment amid investors. Usually, the yen rallied amid risk aversion due to its status as a safe haven. But today, the currency was struggling to rise. Some analysts explained that by the rally of the stock market. Domestic economic indicators were not favorable to the currency of Japan either. European stocks rallied, with all major indices logging gains. That alleviated […]

The Japanese yen was mixed today despite the relatively negative sentiment amid investors. Usually, the yen rallied amid risk aversion due to its status as a safe haven. But today, the currency was struggling to rise. Some analysts explained that by the rally of the stock market. Domestic economic indicators were not favorable to the currency of Japan either.
European stocks rallied, with all major indices logging gains. That alleviated investors’ concerns a bit, putting pressure on the yen. But US trading started will all US stock indices in the red, helping the currency to regain some of its strength. The surge of new coronavirus cases in various parts of the world made investors nervous, potentially attracting them to the safety of the yen. The issue for the Japanese currency is the fact the traders seemingly prefer the US dollar as a refuge, while the yen fails to grab their attention.
Japanese macroeconomic data released on Wednesday was poor, with both manufacturing and services sectors remaining in decline. The headline au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index rose marginally from 47.2 in August to 47.3 in September but remained firmly below the neutral 50.0 level. The au Jibun Bank Flash Japan Business Activity Index rose from 45.0 to 45.6 but also remained far below the level of no growth. Bernard Aw, Principal Economist at IHS Markit, commented on the results:
Flash PMI survey data indicated a further decline in Japanese private sector output during September, setting the scene for further economic weakness in the third quarter.
Not everything was bad, though, as he continued:
That said, the picture of the economy remained much improved when compared to the height of the pandemic during the second quarter. The survey also revealed some positive signs. Firstly, employment moved closer to stabilisation, with only a marginal drop in workforce numbers that was the weakest in the current sequence of job shedding. Secondly, business sentiment improved to the strongest since the start of the year, with manufacturing firms particularly optimistic about the year-ahead outlook.
USD/JPY jumped from 104.93 to 105.46 as of 19:29 GMT today. EUR/JPY was at 122.92, little changed from the opening level of 122.84. GBP/JPY advanced from 133.56 to 134.11.
© NewsInspector for Forex News, 2020. |
Permalink |
No comment |
Add to
del.icio.us
Post tags: EUR/JPY, GBP/JPY, Japan, Manufacturing, PMI, Risk Aversion, Service Industries, Stocks, USD/JPY, Yen
Feed enhanced by Better Feed from Ozh

Dow Suffers Longest Losing Streak In 99 Years, Bonds & Bullion Bid
Dow Suffers Longest Losing Streak In 99 Years, Bonds & Bullion Bid
US Macro Surprise data slumped for the 5th straight week, back into…
The 5 Best High-Yield Savings Accounts of 2022
Money’s review to help you pick the best high yield savings account.
Is Tesla Stock a Buy Amid Analyst Downgrade and Share Buyback Demand?
Tesla (TSLA) has faced plenty of bearish pressure this week.
TSLA stock dropped more than 16% over the past five days and is now down 46% in 2022.
Investors…
-
Base Metals20 hours ago
Meet the 2021 Prospect Awards winners: Part one
-
Financing News23 hours ago
Chakana Announces Private Placement, Gold Fields to Follow Its Participation Rights
-
Companies9 hours ago
THE MINISTRY OF MINES AND ENERGY OF NAMIBIA FINALLY FILED ITS DEFENSE ON MAY 17, 2022
-
Economics21 hours ago
The 7 Best Meme Coins to Buy for the Second Half of 2022
-
Economics21 hours ago
Is The Global Debt Bubble About To Burst?
-
Financing News10 hours ago
SUPERIOR GOLD ANNOUNCES THE FILING OF ITS MANAGEMENT INFORMATION CIRCULAR AND NOMINATION OF MICHAEL PESNER TO THE BOARD OF DIRECTORS
-
Economics22 hours ago
7 Cheap Biotech Stocks to Buy Now
-
Economics23 hours ago
Africa Faces New Shock as Conflict Raises Food and Fuel Costs