Business-Cycle Indicators Stable, Fail to Affect Japanese Yen

THE TAKEAWAY: Leading, Coincident Indices relatively stable, in line with expectations > Subdued markets ignore data, focus on German GDP, Eurozone developments > JPY flat

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The Japanese government’s Cabinet Office released preliminary business-cycle indicators for November on Wednesday that were in line with expectations. The Leading Index was 92.9, up from 92.0 in October, while the Coincident Index dropped to 90.3 from 91.4 in the previous month. Both indicators were relatively stable relative to previous months and the Japanese Yen remained range-bound near 76.90 versus the Dollar in a generally calm market ahead of German GDP data due later in the day. Over the longer term, the possibility of currency-market intervention will continue to be the dominant driver of Yen moves.