This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
After having gotten off to a strong start, the Nikkei turned lower as China concerns weighed on the region. The index printed a low of 12,808 before recovering strongly towards the end of US trade. The Nikkei got off to a good start today, printing a high of 13,238, as USD/JPY also drifted further north and tested ¥98. With limited data out of Japan until Friday, we feel the Nikkei’s moves in the near term will be based on what USD/JPY does.
The data kicks off with durable goods orders followed by the Case-Shiller home price index, new home sales and consumer confidence. US Treasury Secretary Jack Lew and the Richmond Fed will also be on the wires. Should this data prove to be USD positive, then we could see USD/JPY move higher in unison ahead of Friday’s data dump from Japan.