After a short pause, the Japanese currency continues strengthening; the Yen is in demand.
The Japanese Yen is back to strengthening, and although there are no significant purchases on the market right now, the current tendency is quite positive for the Yen and rather negative for the US Dollar. The current quote for the pair is 100.04. We remind you that the low at 99.53 was reached on August 16th
According to the statistics published today, preliminary calculations for the manufacturing PMI in Japan in August increased up to 49.6 points against the previous number of 49.3 points, although it was predicted to increase up to 49.5 points. So far, the indicator hasn’t been able to pass the “wave breaker” at 50 points, the number showing that the economic activity is growing, but the positive tendency can be seen.
One should pay attention to the Nikkei manufacturing PMI, which increased for the first time in 6 months. In the components of the report, we can see a drop in export orders and new orders. But it’s still not too critical.
The Yen may grow all by itself, however, it still means that the strengthening does a lot of damage the Japanese economy and reduces exporters’ profit.
RoboForex Analytical Department
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