Yen Falls as Japanese Economic Data Falters More than Expected
THE TAKEAWAY:Japanese Machine Orders fell 7.1 percent since last month and rose 6.5 percent since last year > Economic data is weaker than what analysts expected >USDJPY rallies to 77.09
The total value of machinery orders placed at major manufacturers in Japan in December fell 7.1 percent. However, activity rose 6.5 percent since the same month a year ago. Both the monthly and yearly figures fell short of analysts’ expectations of a fall of 5.0 percent and a rise of 8.5 percent, respectively. In addition, fourth quarter housing loans rose 2.2 percent, up from the 2.1 percent increase in the third quarter.
Overall, the Japanese economy appears to be warming at a slower rate than previously believed. Traders pushed down the Yen in response to the weak data, and the USDJPY has since advanced to 77.09.
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