Trade Desk Thoughts - Japanese Manufacturing PMI

Japanese Manufacturing PMI Actual 44.3, Previous 46.9

Release Explanation: This release is derived from a survey of approximately 300 purchasing managers which asks them to rate the business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Trade Desk Thoughts: The Japanese manufacturing PMI came in at the lowest reading since the start of 2007 at 44.3 seasonally adjusted. This is a six year low for the index. A reading below 50 generally indicates a contraction phase within the economy. In the individual components that make up the index output was 40.9, while new orders was 39.6, new export orders was 45.4, backlog was 39.1, finished goods stocks was 52.0, employment was 46.9, output prices was 58.1, input prices was 68.3, supplier delivery time was 48.9, purchase quantity was 42.9 and stocks of purchases was 51.1.

Forex Technical Reaction: The yen increased slightly from the reports that have been released this evening. The pair is still quite a ways from the neutral LFB pivot at 104.95.

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