Forex: Japan All Industry Activity Index Impresses but Yen Unchanged
THE TAKEAWAY: The Yen remained largely unchanged as the Japan All Industry Activity Index came in better than expected as focus still remains on monetary easing and a new BoJ chief.
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The Japan All Industry Activity Index for the month of December was +1.8% which beat analysts’ expectations of +1.7%. Despite the data impressing in a difficult economic environment, the Yen made no significant move on news of the figure.
The Yen remained around the 93.39 area against the US Dollar as investors made it clear that the data was not the most important factor driving the currency. With a significant monetary easing program in place, policy makers hinting at more aggression, and a new Bank of Japan Governor due to be announced next week, the currency needed more than a slightly positive data release to have seen a larger move.