- Nikkei rebounded by 2.38% in today’s trading
- Japanese consumer confidence improved from 41.1 to 41.5 in July
- Japanese preliminary machinery tool orders up by 37.7% y/y
- Japan’s tertiary industry activity index down by 0.1% vs. estimated 0.2% gain
- Swiss retail sales to show 0.7% y/y gain?
Why, hello there weekend gaps! Yen pairs opened higher than Friday’s closing prices, with GBP/JPY starting the week off at 171.47 and USD/JPY gapping up to 102.21. It appears that traders expected to see bleak data from Japan in today’s set of releases, which surprisingly turned out mostly fine.
Japan’s consumer confidence index climbed from 41.1 to 41.5 in July while the preliminary machine tool orders report showed a 37.7% annualized gain, up from the previous 34.1% reading. However, the tertiary industry activity marked a 0.1% decline instead of the estimated gain. Despite that, the Nikkei managed to score a strong 2.38% rebound for the day as risk appetite picked up.
Movement among other major pairs was limited, as GBP/USD consolidated around the 1.6775 area while EUR/USD edged slowly down from the 1.3400 resistance. AUD/USD is moving sideways below the .9300 handle and NZD/USD consolidated around .8475. Currency crosses also took it easy in the past few hours, with AUD/NZD holding on to 1.0950 and EUR/AUD attempting to climb back above 1.4450.
Data is light in the upcoming London session, as the Swiss retail sales data is the only report up for release. Market watchers are expecting to see a 0.7% increase, enough to erase the previous month’s 0.6% drop in consumer spending. Stronger than expected data could allow the franc to advance against its major counterparts.
Do stay tuned for any updates on the situation in Israel, Russia, and Iraq, as geopolitical tensions continue to have an impact on sentiment in the financial markets. Stay on your toes!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together. In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!