USD/JPY Forecast June 8-12 – Yens Slips Against Greenback

USD/JPY fundamental mover

Japanese capital spending rebounded nicely in Q1, with a gain of 4.3 percent. The indicator declined by 3.5 percent beforehand. At the same time, consumer spending continues to fall. Household spending declined by 11.1 percent in April, after a drop of 6.0 percent a month earlier. This dismal figure was the fastest decline on record, as consumers have put a tight clamp on spending.

In the U.S., ISM Manufacturing PMI improved to 43.1, up from 41.1 beforehand. The PMI has indicated contraction for three straight months, as the manufacturing sector has been hit hard by the economic crisis. The services sector also finds itself in contraction territory, as the ISM Non-Manufacturing PMI came in at 45.4 in May within expectations. Nonfarm payrolls shocked with a huge gain of 2.5 million in May, defying the estimate of -7.7 million. In April, the economy shed a staggering 20.5 million jobs. The unemployment rate fell to 13.3%, down from 14.7% beforehand. The forecast stood at 19.4 percent.