Yen Ignores Soft Leading Index Data, Gains on US Budget Woes

DailyFX

Talking Points:

  • Japan’s Leading Economic Index fell to a 6-Month Low in August
  • Data Prompted No Response from the Japanese Yen
  • US Budget Impasse Continues to Dominate the Markets’ Focus

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Japan’s Leading Economic Index – a gauge tracking the trend in the business cycle - fell to a six-month low of 106.5 in August. The result was slightly weaker than economists’ expectations calling for a print at 106.6 ahead of the announcement.

The Japanese Yen broadly ignored the outcome, rising against its major counterparts amid risk aversion triggered by the lingering US government shutdown. The possible negative implications of the budget deadlock for US demand sent Japan’s Nikkei 225 stock index lower, boosting safe-haven demand for the Yen.

USD/JPY trading below the first daily pivot point support level of 97.13. Next barriers are at 96.89 and 96.53. http://www.dailyfx.com/technical_analysis/pivot_points

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USDJPY 5 Min: Oct 7, 2013

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Yen_Ignores_Soft_Leading_Index_Data_Gains_on_US_Budget_Woes_body_Picture_1.png, Yen Ignores Soft Leading Index Data, Gains on US Budget Woes

Chart created byCecilia Sanchez Corona using Marketscope 2.0

-- Written by Cecilia Sanchez Corona, DailyFX Research. Feedback can be sent to csanchez@fxcm.com.

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