JPY Daily News

Positive Economic Indicators Boosted JPY

In Japan, the recent nomination of Taro Aso, a 68-year old former foreign minister, will almost certainly bring some stability to the Japanese currency. The country's economic decline in the second quarter of 2008 was due largely to the latest political turmoil following Prime Minister Yasuo Fukuda's resignation in September.

The outlook for Japan's economy in the third quarter is expecting further weakness, and economic concerns have risen to the top of the political agenda. The main reasons for this downgrade are the figures from private consumption and exports of goods and services. Exports, which contribute not only to economic growth but also stimulate business investment, and indirectly consumer spending, fell recently. As a result, private consumption contracted by 0.5% in the second quarter. There is great pressure on the new Prime Minister to articulate plans to revive the economy, while also taking into account the structural constraints the country faces, such as its poor fiscal position and ageing population. Taro Aso has come out most clearly in favor of increasing spending, and therefore of delaying the proposed return to primary fiscal balance.

Today, the movement of the JPY will likely be affected by the release of the Tankan Manufacturing Index. This Index is a leading indicator of the country's economic health. Since businesses are more likely to react quickly to changes in the market. A change in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.

Current Time: 05/26 22:48 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
09/30
	06:00	JPY	Housing Starts	y/y	19.0%	49.5%	53.6%
	00:50	JPY	Tankan Large Manufacturing Index		5	-2	-3
	00:50	JPY	Tankan Non-Manufacturers Index		10	5	1