USDJPY Mixed As Manufacturing Leads Gain in US June Industrial Production
THE TAKEAWAY: [US Industrial Production Rises More Than Forecast in June] > [Pickup in manufacturing may boost economy] > [USDJPYmixed]
Industrial production in the U.S. rose more than expected in June, led by gains in manufacturing of motor vehicles and parts. According to a report released by the Federal Reserve today, output at factories, mines and utilities gained 0.4 percent in June, after a 0.2 percent decline in May that was revised from 0.1 percent originally reported. The consensus estimate of 81 economists surveyed by Bloomberg News had projected a 0.3 percent gain last month.
Manufacturing output increased by 0.7 percent in June, reversing the prior month’s decline, while mining output also rose 0.7 percent in June. Meanwhile, utilities output fell 1.9 percent last month after leading gains in production for the two months prior. Today’s report signals a pickup in manufacturing in the U.S., which would boost economic growth. However, factories will continue to face the challenges of a weakening global economy and restrained consumer spending amid stagnant wage growth and ongoing elevated unemployment in the U.S.
USDJPY 1-minute Chart: July 17, 2012
Chart created using Market Scope – Prepared by Tzu-Wen Chen
In the minutes after the industrial production report was released, the U.S. dollar fluctuated against the yen and overall remained largely unchanged. At the time this report was written, the USDJPY pair was trading at 79.08 yen to the dollar.
--- Written by Tzu-Wen Chen, DailyFX Research