Forex: USD/JPY above 100.30 on better than expected US Manufacturing PMI

Written by: Violina Todorova
July 24, 2013 Wednesday July 24th:_ The greenback has been firming against the yen in today’s American trading, boosted by a better than expected reading in the Markit US Manufacturing PMI for July, released a short time ago, with the pair increasing 97 pips to an intraday high so far at 100.37.

The preliminary reading came out as a rise to 53.2, up on June’s 51.9 and beating expectations for no change.
Earlier today the MBA’s Mortgage Applications release revealed a drop of 1.2 percent last week (the week ended July 19), following the prior week’s fall of 2.6 percent.
Earlier in the European session, the greenback also traded higher against the yen, supported by the preliminary reading of HSBC Chinese Manufacturing Purchasing Managers Index, which reported a fall to 47.7 this month from a revised and final reading of 48.2 for June. Analysts had been expecting the index to rise to 48.6.

Also today, Japan’s Merchandise Trade Balance was reported as a deficit of ¥180.8 billion, the 12th consecutive month of red ink, albeit well down on May’s revised deficit of ¥996.4 billion.
Exports to China, one of Japan’s largest trading partners, climbed 4.8 percent in June from a year earlier, well down on May’s 8.3 percent rise and a further sign that China’s slowing growth is hurting demand for Japanese goods.

The US New Home sales data for June on monthly basis is due to be published at 15:00 BST today. Forecasts are for a rise to 485,000 from May’s 476,000. Sales of new homes have been rising steadily over the past 18 months after falling to a modern-era low of 306,000 in 2011. Ultra-low interest rates and higher employment have enticing more families into buying a home.

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