Bad start to the week for the Japanese Economy

Machinery orders for the Japanese economy came in much worse than analysts’ predictions in the early hours on of Monday morning.

As a major producer of goods worldwide, the report is key for investor confidence within Japan and increases in this figure normally mean that business confidence and investment is high and generally strong for the JPY. This meant that the Pound has had a strong start to the week against the JPY.

A busy week ahead in terms of Japanese Data

This week sees a host of economic data that could influence exchange rates. Wednesday could be set to be a busy day for the JPY, firstly domestically with industrial production figures for the month and year set to released, followed by foreign investor figures later on. Outside of Japan, the US interest rate decision could lead to investors fleeing the safe haven status of the Japanese Yen and investing into the US Dollar if there is a clear path for future rate hikes in the US.

On Thursday, the main event for the week is the Japanese Interest rate decision. In the last interest rate decision in January the Bank of Japan kept interest rates in negative territory at 0.1%. This month is set to be no different, however the subsequent monetary policy statement could give future direction as to when and if the Bank of Japan can raise interest rates out of negative territory and reduce their hefty quantitative easing programme.

For more information or future forecasts for the Japanese Yen, speak to one of our currency experts on 01494 725 353. They may be able to assist you with a timed transfer that could save you considerably.

News

Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.