Forex News – USDJPY rises after strong US factory orders
July 2, 2013 2:31 pm
The dollar rose further against the yen after U.S. data showed that factory orders rose slightly above forecast in May by 2.1 percent, versus the 2.0 percent consensus. Also April factory orders were revised up to 1.3 percent.
The upbeat data lifted market sentient during the New York trading hours, as it gave optimism that the manufacturing sector in the world’s biggest economy is stabilizing.
USDJPY soared to a high of 100.42 yen shortly after the data at 10am New York time. The pair is up 0.7 percent so far today.
Driving the increase in orders was demand for capital equipment which increased more than the U.S. Commerce Department estimated last week.
Also helping the figures were automakers and homebuilders which are helping keep U.S. factories busy, with an increase in sales of motor vehicles, as well as gains in housing construction.
It is expected that a pickup in business investment in new equipment and improving consumer demand would help boost manufacturing and the expansion in the second half of 2013.
Strong economic data is important since it will give the Federal Reserve more guidance on how soon to taper stimulus.
The dollar rose further against the yen after U.S. data showed that factory orders rose slightly above forecast in May by 2.1 percent, versus the 2.0 percent consensus. Also April factory orders were revised up to 1.3 percent.
The upbeat data lifted market sentient during the New York trading hours, as it gave optimism that the manufacturing sector in the world’s biggest economy is stabilizing.
USDJPY soared to a high of 100.42 yen shortly after the data at 10am New York time. The pair is up 0.7 percent so far today.
Driving the increase in orders was demand for capital equipment which increased more than the U.S. Commerce Department estimated last week.
Also helping the figures were automakers and homebuilders which are helping keep U.S. factories busy, with an increase in sales of motor vehicles, as well as gains in housing construction.
It is expected that a pickup in business investment in new equipment and improving consumer demand would help boost manufacturing and the expansion in the second half of 2013.
Strong economic data is important since it will give the Federal Reserve more guidance on how soon to taper stimulus.
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