The yen was trading subdued amid statistics published today. As it became known, the Tankan large manufacturers index, published by the Bank of Japan, and reflecting general business conditions for large Japanese manufacturing companies amounted to 6, which coincided with the value in the first quarter, but was lower than economists’ forecast of 7. Tankan services sector fell to 18 from the previous value of 19. This index is an indicator of the growth of domestic demand and the health of non-tradable sector. Also,the all industries index grew by 6.3%, which is higher than the previous value of 6.2%, but below economists’ forecast of 6.8%.
The pound has dropped significantly since the beginning of the session, after the British prime minister Theresa May said that Britain will begin the process of exit from the European Union no later than March 2017. The Prime Minister said that the exit from the EU is quite complex, and expressed the need to begin preparatory work with the remaining countries in the EU, so that when the time comes, the negotiation process will be smoother. “This is important not only for the UK, it is important for the whole of Europe, so we made the best of it, with the least problems for business”, – she said.
In addition, this week, traders will be waiting for official data on the UK’s service sector, industrial production and production in the manufacturing industry, which will be released on Friday. Economists polled by Wall Street Journal, expected that production in the manufacturing industry of Great Britain grew by 0.5% in August, after unchanged in July.
EUR / USD: during the Asian session, the pair was trading in the $ 1.1225-40 range
GBP / USD: during the Asian session the pair fell to $ 1.2920
USD / JPY: during the Asian session, the pair was trading in the Y101.20-65 range
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