Wednesday, July 2, 2014

USD/JPY 7/2

USD/JPY is steady on Wednesday, as the pair trades in the mid-101 range late in the European session. On the release front, today’s highlight is the ADP Nonfarm Payrolls, which should be treated as a market-mover. As well, Federal Reserve chair Janet Yellen will address the IMF in Washington. There are no Japanese releases on Wednesday.
The Tankan indices are key indicators of the health of the Japanese economy, and the May data was disappointing. Tankan Manufacturing Index slipped to 12 points, a three-month low. The Tankan Non-Manufacturing Index dropped to 19 points, down from 24 points a month earlier. This reading matched the estimate. As well, Japanese Average Cash Earnings posted a respectable gain of 0.8%, matching the forecast.