Japanese Yen Stays Up After Modest Leading-Index Gains
- Japanese economic activity ticked up in January, according to an official leading index
- Its revival was marginal, but it was above expectations and the previous month’s slip
- The Japanese Yen didn’t move much, but stayed near the day’s peaks
The Japanese Yen remained close to its highs for Wednesday against the US Dollar as a key indicator of economic vigor ticked upward.
The Ministry of Economy, Trade and Industry’s All Activity Index rose 0.1% on the month in January, it said. While this was hardly stellar, it was just above both the flat outcome expected by the market and December’s 0.3% contraction. The index evaluates the monthly change in overall production in all parts of Japan’s economy; services, manufacturing, construction and the public sector.
The US Dollar weakened quite sharply against the Japanese Yen and much else as the Tuesday’s US session faded out. Investors were reportedly worried about both the pace of US interest-rate rises and the deliverability of the Trump White House’s economic program. However, USD/JPY has spent most of Wednesday’s Asia session bumping along a bottom around the in the 111.50 area. Neither this latest data nor earlier Japanese releases seemed able to change that.
Forming a base? USD/JPY
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--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.