28 Jun 2013
Flash: USD/JPY eyes tranche of economic data – Westpac
FXstreet.com (New York) - The month-end brings the usual slew of data – on Friday investors see the June Markit PMI, which has bounced sharply this year, notes Global FX Strategist Sean Callow at Westpac.
Moreover, Friday also brings May household spending, unemployment, CPI, IP, retail sales and construction data. Of these, IP and CPI should be most relevant to markets. On Mon it’s the Jun Tankan survey of business sentiment, with particular interest in corporates’ USD/JPY expectations.
According to Callow, “The strong run of US data has helped USD/JPY consolidate its FOMC-driven gains though 99 has proven too much for now. Indeed Japan’s ongoing sale of foreign bonds seem likely to help keep a lid on the pair and yen crosses in general, with net sales of foreign bonds for the past 6 weeks, including >$12bn last week, the most since Apr 2012. This leaves us neutral on the week but still inclined to buy dips multi-week.”
Moreover, Friday also brings May household spending, unemployment, CPI, IP, retail sales and construction data. Of these, IP and CPI should be most relevant to markets. On Mon it’s the Jun Tankan survey of business sentiment, with particular interest in corporates’ USD/JPY expectations.
According to Callow, “The strong run of US data has helped USD/JPY consolidate its FOMC-driven gains though 99 has proven too much for now. Indeed Japan’s ongoing sale of foreign bonds seem likely to help keep a lid on the pair and yen crosses in general, with net sales of foreign bonds for the past 6 weeks, including >$12bn last week, the most since Apr 2012. This leaves us neutral on the week but still inclined to buy dips multi-week.”