The Japanese yen has ticked higher in the Tuesday session. In North American trade, USD/JPY is trading at 110.62, down 0.23% on the day. On the release front, there are no Japanese events. In the U.S, Factory Orders posted a gain of 0.4% in May, beating the estimate of 0.1%. On Thursday, the FOMC will release the minutes of its June meeting, when the Fed raised rates by a quarter-point.

The week started with the release of the well-respected Tankan indices. The Tankan Manufacturing Index dropped to 21 in the second quarter, down from 24 points in the first quarter. This reading was just shy of the estimate of 22 points. Tankan Non-Manufacturing Index edged up to 24, after being pegged at 23 for three straight quarters. This edged above the forecast of 23 points. Final Manufacturing PMI improved to 53.0, close to the estimate of 53.1 points. Trade tensions remain at high levels, and although Japan has not been on the receiving end of U.S tariffs, a global trade war could be devastating for the Japanese economy, which is heavily dependent on its export sector.

In the U.S, the manufacturing sector continues to expand. The ISM Manufacturing PMI jumped to 60.2 in June, above the estimate of 58.2 points. This marked a 4-month high. Factory Orders followed this trend, gaining 0.4%, above the estimate of 0.1%.

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