USD/JPY continues to post losses on Tuesday, as the pair trades in the mid-101 range late in the North American session. There are no major releases on today's schedule. In Japan, Economy Watchers Sentiment fell short of the estimate. Later in the day, we'll get a look at M2 Money Stock. In the US, the NFIB Small Business Index softened in June. Today's highlight is JOLTS Job Openings, with the markets expecting a strong reading.
US employment numbers impressed last week, led by Nonfarm Payrolls and the Unemployment Rate sparkled. Nonfarm Payrolls, one of the most important indicators, bounced back in June with a strong gain of 288 thousand new jobs. This crushed the estimate of 214 thousand. Unemployment Claims was steady at 315 thousand, almost replicating the estimate of 314 thousand. There was more good news from the Unemployment Rate, which continues to move downward. The indicator dipped to 6.1%, its lowest level since September 2008. The strong employment numbers are sure to increase speculation about an interest rate hike by the Federal Reserve, and remarks by Fed policymakers will be under the market microscope.
The Tankan indices are key indicators of the health of the Japanese manufacturing and services sectors, and highly anticipated by the markets. The May data was disappointing, as both indices softened. Tankan Manufacturing Index slipped to 12 points, a three-month low. This was well short of the estimate of 16 points. The Tankan Non-Manufacturing Index dropped to 19 points, down from 24 points a month earlier. On a positive note, this matched the estimate.
USD/JPY 101.64 H: 101.86 L: 101.62
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