The dollar is slightly higher against the Japanese Yen following disappointing economic data from the country. Yesterday, we received the Tankan Large Manufacturers and Non-Manufacturers Index which missed the consensus estimates. The Manufacturers Index remained unchanged at 23, a point lower than what analysts were estimating. Similarly, the Non-Manufacturers index was unchanged at 23.
This was the first time in two years that the sentiment has fallen. It is a reflection of how companies in the country are taking the recent trade issues and partly, the strong Japanese Yen. As you recall, Trump has placed tariffs on steel and aluminum from countries such as Japan.
To show the significance of all these, Japan’s Prime Minister Shinzo Abe has planned a trip to the United States to speak with Donald Trump and his team. In the discussions, he is expected to ask for exemptions on the steel and aluminum tariffs. He is also expected to seek the commitment from the United States on the planned meeting between the two countries and North Korea.
Meanwhile, the dollar is expected to be a bit volatile this week as traders wait for key economic data from the United States. This data includes services and manufacturing PMIs as well as the jobs numbers for March.
The pair is currently trading at 106.28, which is slightly higher than last week’s close of 104.6. The pair is trading in line with the two-week moving average and its RSI is currently at 45, reflecting a neutral stance. Today, traders should watch out for the U.S manufacturing PMI data but still, it will remain being a volatile pair.