Japanese yen daily update for 2nd October 2017


The yen has been selling off this morning, both on domestic data and interest rate hike expectations in the US. The Bank of Japan's tankan survey showed that manufacturing growth is at the highest level in a decade. As positive data out of Japan typically boosts risk sentiment (causing Japanese investors to park their funds offshore), the yen fell on the news. Looking at the US, expectations are rising for a rate hike in December. This is following comments from Harker last Friday, a voting member of the Fed.  

USD/JPY is currently trading above 112.80, having started the day below 112.50. EUR/JPY remains mostly flat, with the pair trading below 132.80 currently. 

Looking at economic data this week, we'll see consumer confidence figures tomorrow. On Thursday, we'll see data regarding Japanese investments in foreign bonds and stocks. Finally, foreign reserve data and leading indicators will be published on Friday.