Article by ForexTime
Investors flocked to the safe haven Japanese yen again today on continued risk aversion after disappointing data out of China.
The world’s second largest economy’s slowdown may be spreading to its services sector. Data published today by Caixin Media and Markit Economics showed that the services purchasing managers index (PMI) fell to a 17-month low of 50.2 in December, down from 51.2 a month earlier.
The reading for the China services business activity index was the second-lowest since the data begin in November 2005. The lowest was 50 in July 2014, Caixin’s report said.
Caixin’s China Composite PMI, which covers both manufacturing and services, dropped to 49.4 in December from 50.5 the previous month.
This sentiment gauge clearly clouds the growth outlook for China.
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THe yen gained on the news due to safe haven flows, pushing USD/JPY down to 118.34.
Article by ForexTime
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