USD/JPY rose to its highest since January of 2017, carrying on its end of 2021 strength (yen weakness) further during the first Japanese session for 2022 (it was a Japanese holiday on Monday). With the impact of Omicron now being seen as not as bad it could have been and demand for growth assets rising the attractiveness of ‘haven’ assets, such as yen, has waned.
With other major currency rates against the USD fairly steady yen crosses gained also.
The data point of focus for the session was the Caixin China Manufacturing PMI. It came in at an improved, and above expectations, 50.9. This augers well for steady manufacturing output in China and comes despite sporadic lockdowns, supply chain disruptions and chip shortages. Japan’s manufacturing PMI was solid also.
China’s Digital Yuan App (the pilot version), operated by the People’s Bank of China launched today in Android and IOS app stores in China.