Forex News

Live Forex news from all over the world.


Japanese Yen Mixed After Services PMIs for China & Japan

June 3, 2020 at 13:04 by Vladimir Vyun

Rolled 1,000-yen banknoteThe Japanese yen was mixed today after economic data that put markets in a risk-on mode. Markit released services Purchasing Managers’ Indices for a range of countries during the trading session. Of particular importance to the yen were the reports for China and Japan.

The seasonally adjusted Caixin China Services PMI demonstrated a sharp bounce last month, suggesting that the Chinese service industry returned to strong growth. It made investors more optimistic, prompting them to prefer riskier assets over safer ones. And that was negative to the yen. But the Forex market did not necessarily reflect that optimism as commodity currencies declined, except for the New Zealand dollar.

As for economic data for Japan, the au Jibun Bank Japan Services PMI recovered to 26.5 in May from April’s record low of 21.5. The recovery was not nearly as impressive as in the Chinese index, and the reading below the 50.0 means that the Japanese service industry continues to contract. The report commented on the result:

Japan’s service sector remained under intense pressure during May, according to the latest PMI data, as business activity fell at a rate that before the coronavirus disease 2019 (COVID-19) pandemic was unparalleled in over 12 years of survey data. Demand for Japanese services fell considerably again in May amid further event cancellations and store closures.

USD/JPY was little changed at 108.64 as of 13:02 GMT today. EUR/JPY was up from 121.36 to 121.58 but has retreated from the daily high of 122.09. CAD/JPY declined from 80.37 to 79.95 intraday, though the pair has rebounded to 80.26 by now. NZD/JPY rose from 69.21 to 69.45, touching the high of 69.77 during the trading session.

If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

Leave a Reply