YEN-kura's Real-time Email Magazine "Real Top Trading"

Happy New Year to everyone. I look forward to your continued support this year.

The start of the year was strong across indicators, beginning with a robust rebound.
Let's review today's economic indicators.12Month Caixin China Manufacturing PMIPMIwas51.9, up from the previous50.9and above the forecast50.7. The Shanghai Composite rose by1% and Asian stocks were broadly firm.
In December, Germany's number of unemployed people fell by1.7ten thousand, versus a prior decline of60hundreds; compared with the forecast of50ten thousand, the figure was stronger, and the unemployment rate remained at6%, the lowest since reunification.
In December, UK manufacturingPMIwas56.1, up from November's53.6, and above the forecast of53.3. DAX and FT rose, and only Turkey declined.
Attention on12Month U.S. ManufacturingISMwas54.7, up from November's53.2, versus the forecast of53.6. New orders were60.2 (November: 53), and the employment index was53.1(November: 52.3), with a strong breakdown as well.

Ultimately, indicators were strong, and stock prices rose (the Dow currently up60 dollars). As Europe came online, the dollar/yen rose, initially the cross yen remained strong, but the dollar gained momentum over time.
After the ISM release, dollar/yen reached118.60, and euro/dollar rose to1.0340; the Dow Jones also briefly strengthened by170 dollars, but has since undergone a correction.

However, what tempered this momentum seemed to be Mr. Trump’s remarks
Mr. Trump stated that the Chevrolet Cruze imported from Mexico to the U.S. without tariffs should be produced domestically or face a hefty border tax.
Additionally, Ford canceled plans for a new factory in Mexico worth around16 billion dollars, sending the Mexican peso plunging to1 USD =20.90 pesos.
Concerns about rising protectionist sentiment led to stock declines, and the dollar/yen fell to around117.50, creating a see-saw movement.

We maintain a long position on the New Zealand dollar, watching developments for now.