JPY

Good Morning:

The USD and JPY fell versus all major counterparts, as data from China showed that manufacturing is expanding.  This caused investors to seek higher-yielding assets.
The Aussie rose as data showed that their economy grew by the fastest pace in over 3 years.
Today we have data on the growth of US manufacturing, and the data is expected to be disappointing.
On another note-The Swedish krona rose as data from this Scandinavian country showed that manufacturing expanded for the 15th month in a row.

Good Morning:

Released at the same time as ind. production was Japan’s y/y retail sales which came in at 3.9% versus the survey of 3.6% and prior reading of 3.3%.

The JPY traded slightly higher after August preliminary industrial production came in slightly better than expected. The details are as follows:

• Industrial Production (m/m) - Survey: -0.2%   Actual: 0.3%   Prior: -1.1%
• Industrial Production (y/y) - Survey: 14.3%   Actual: 14.8%   Prior: 17.3%

…

The JPY was unchanged  after Japan’s August Nomura manufacturing PMI came in at 50.1 versus the prior showing of 52.8. The market had a limited reaction to the release.

Good Morning:

The UK is closed today for their summer bank holiday-thus thinning out the ranks of market participants for a Monday.
The JPY advanced as speculation that the BOJ will increasee credit easing measures. 
Policy makers in Japan indicated that they want a weaker Yen.  They did not take direct steps to weaken the JPY, but made every indication that they will f necessary.
Asian equity markets were higher, and European markets are lower.  US Futures are also lower this mornng.

• The BOJ has kept the overnight rate unchanged at 0.10%. (unanimous)
• BOJ expands credit program from 20 Trillion Yen to 30.
• To provide 10TLN Yen in 6 month lending program.
• Expansion of credit to enhance easing effect and guide market rate lower.
• BOJ reiterates economy will stay on recovery path, shows further signs of moderate economy.
• BOJ says consumer price drop will keep moderating.
• Uncertainty about economy, particularly US growing.
• Suda was opposed to expanding credit.

Surprisingly, the Yen received a bid on this release, moving off session highs, but the USD/JPY has gained some traction in the middle of the 85 handle.

Japan’s July jobless rate came in at 5.2%; slightly worse than the forecast and prior reading of 5.3%. The details of the release are as follows:

• Jobless Rate - Survey: 5.3%   Actual: 5.2%   Prior: 5.3%
• Overall Household Spending (y/y) - Survey: 1.5%   Actual: 1.1%   Prior: 0.5%
• Tokyo CPI Ex Food/Energy (y/y) - Survey: -1.4%   Actual: -1.4%   Prior: -1.0%
• National CPI Ex Food/Energy (y/y) - Survey: -1.5%   Actual: -1.5%   Prior: -1.5%
• National CPI (y/y) - Survey: -0.9%   Actual: -0.9%   Prior: -0.7%

The market had a very limited reaction to the release.

Good Morning:

Alert!: Durable Goods rises .3%-the data was expected to rise 3%.
The data points to continued speculation that the economy is slowing.

The market had a limited reaction to Japan’s July trade balance, which came in better then expected. The details are as follows:

• Adjusted Merchant Trade Balance Total- Survey: 397.5B   Actual: 610.4B   Prior: 546.0B
• Corp Service Price Index - Survey: -1.0%   Actual: -1.2%   Prior: -1.0%
• Merchands Trade Balance Total - Survey: 466.3B   Actual: 804.2B   Prior: 687.0B
• Merchant Trade Export (y/y) - Survey: 21.8   Actual: 23.5   Prior: 27.7
• Merchant Trade Imports (y/y) - Survey: 19.8   Actual: 15.7   Prior: 26.1