Japanese Yen Gets Support from Good Domestic Reports

The Japanese yen rose a bit against its major peers today thanks to the supportive macroeconomic reports released in Japan during the current trading session.

Japan’s core Consumer Price Index rose 0.8% in October from a year ago, while the Tokyo core CPI increased 0.6% in November. Both indicator were matching forecast exactly. The unemployment rate was stable at 2.8%, also within expectations.

Meanwhile, household spending and capital spending exceeded forecasts. Household spending was unchanged in October from the same month a year ago, whereas experts had predicted a drop by 0.2%. Capital spending increased by 4.2% in the third quarter of this year from the same period of the previous year compared to the predicted increase by 3.3%.

The headline Nikkei Japan Manufacturing Purchasing Managers’ Index increased in November to 53.6 from 52.8 in October. While it was a lower reading than the preliminary 53.8, it still was the strongest improvement in manufacturing sector conditions since March 2014.

USD/JPY slipped from 112.52 to 112.46 as of 10:33 GMT today. EUR/JPY was down from 133.95 to 133.86, retreating from the daily high of 134.37. GBP/JPY declined from 152.15 to 151.59.

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