“Flash-Crash” Courtesy of Mrs Watanabe | ISM Manufacturing Data in Focus
Published January 3, 2019
In the early hours of trading in Asia, the yen jumped almost 8% against the Australian dollar and 10% against the Turkish lira. The haven asset has strengthened against all its major counterparts over the past 12 months as concerns over global economic growth mounted. USD/JPY is currently trading at 107.65.
Later today, the new US Congress will be sworn in as the Democrats take control of the chamber. Top of the agenda will be finding a solution to the ongoing government shutdown which is currently in its 13th day. Negotiations are scheduled to resume this Friday.
US ISM manufacturing data is expected to edge lower in a report published today for the December readings. This comes at a time where broader weakness across regional reports have occurred, including recent negative data on the Richmond Manufacturing Index.
Global manufacturing continues to show signs of slowing down in Asia. Regional PMI’s are a leading indicator of regional exports, with the current weakness in Asian PMI’s suggesting Asian currencies have not have priced in sufficiently; rather, they are continuing to forecast lower.