The Japanese yen is listless on Monday, as the pair trades slightly above the 104 line in the European session. On the release front, Tertiary Industry Activity disappointed, coming in at -0.1% in July. Consumer Confidence showed little change, missing expectations. In the US, there are no economic releases to start off the week. The sole US event on Monday is a speech by Federal Reserve Governor Stanley Fischer, who will speak at a conference in Tokyo.
Japanese releases started off the week with disappointing numbers. Tertiary Industry Activity, an important manufacturing indicator, posted a decline of 0.1%, short of the estimate of a 0.2% gain. This weak reading was a sharp drop from the strong gain of 0.9% a month earlier. Elsewhere, Consumer Confidence came in at 41.5 points, short of the forecast of 42.3 points. The good news is that the indicator has moved upwards for three consecutive months. We'll get a look at the BOJ minutes on Tuesday.
US releases enjoyed a solid week, led by the IMS Non-Manufacturing PMI and Unemployment Claims. The PMI, which measures the strength of the services sector, climbed to 58.6 points, a ten-month high. Unemployment Claims dropped to 289 thousand, beating the estimate of 305 thousand. The four-week claims average, which is less volatile than the weekly count, dipped to 293,500, its lowest level since February 2006. The improving labor market points to a growing economy, and the dollar has gained broad strength thanks to solid economic data.
USD/JPY 102.13 H: 102.19 L: 102.02
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