Yen in Red, Ignoring Positive Data

The Japanese yen was in red against basically all other most-traded currencies today despite relatively positive domestic macroeconomic data. Some market analysts explained the weakness by rising global bond yields.

Japan’s core Consumer Price Index rose 0.7% in May, year-on-year, the same as in April and within expectations. While it was nice to see inflation stabilize after two months of slowdown, the consumer price growth was still far from the central bank’s 2% target and unlikely to reach it in a foreseeable future.

The Nikkei Flash Japan Manufacturing PMI rose to 53.1 in June from 52.8 in May instead of falling to 52.6 as analysts had predicted. The report noted that the upward trend in the industry was solid throughout 2018.

The Index of All Industry Activity rose 1.0% in April from the previous month after showing no change in March. The actual reading was slightly better than the forecast increase by 0.9%.

USD/JPY traded at 110.00 as of 13:45 GMT today after opening at 109.96 and rising to the high of 110.22 earlier. EUR/JPY gained from 127.60 to 128.25. GBP/JPY advanced from 145.50 to 146.17, touching the high of 146.65 intraday.

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