News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USDJPY Mixed As Manufacturing Leads Gain in US June Industrial Production

USDJPY Mixed As Manufacturing Leads Gain in US June Industrial Production

Tzu-Wen Chen, Technical Strategist

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

USDJPY_Mixed_As_Manufacturing_Leads_Gain_in_US_June_Industrial_Production__body_Picture_1.png, USDJPY Mixed As Manufacturing Leads Gain in US June Industrial Production

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES