USDJPY Steady Through a Wave of Disappointing Japanese Data
- USDJPY and the Nikkei 225 were little moved following this morning’s disappointing data
- Industrial Production grew 0.2 percent versus the 1.8 percent forecast
- While important economic data, debate around BoJ stimulus upgrade may distract the Yen
The Japanese Yen held steady against the US Dollar as a set of disappointing data crossed the wires. Japan’s preliminary industrial production figure for August (MoM) contracted -0.5 percent as opposed to the 1.0 percent consensus forecast markets were anticipating. Offer a similarly sour view of the economy through the month, retail sales would also miss the market. Retail trade figures through August were unchanged against forecasts for 0.5 percent growth.
The mild reaction from the currency may be due to the market’s expectation that this data will not tip the scale on the debate of more Bank of Japan stimulus. However, with inflation figures last week failing to take despite the QQE program and the memory of the October 2014 upgrade in mind, investors remain vigilant for any clues that further support may be in the wings. In its latest monetary policy briefing, the central bank maintained its objective to increase the monetary base by an annual pace of about 80 trillion Yen.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.