Forex Marketz Daily Forex News – Fully Markets Update
This morning, the Japanese yen, including the benchmark USD/JPY, barley moved on strong Japanese economic data. This was thanks to a dovish monetary policy decision thanks to the Bank of Japan.
The preliminary manufacturing Purchasing Managers Index, for January, was up to 54.4, from December’s 54.0. The latest release was the strongest PMI in the last 47 months.
The firm Markit compiles the data. Markit said that Japanese manufacturing has found support by solid output as well as good employment figures. Also, the Bank of Japan’s remains committed to force more pricing power into the economy, Markit also said that output price inflation came in at its fastest pace seen since October 2008.
In other data that crossed the news wires earlier showed that December was a good month for Japan’s import and export companies. Despite an overall trade balance that missed forecasts. Overall it came in at ¥359 billion. This was above November’s ¥112.2 billion. However, it was below the ¥535.0 billion that economists had expected. Still, the trade data showed that there was record levels of monthly with Japan’s exports to China and the rest of Asia.
The release showed that exports were up 9.3 percent. Imports up a jumped 14.9 percent.
The Japanese Yen more concerned with the BOJ
Even though this was good economic data today, the yen shrugged it odd. Investors are more focused on the Bank of Japan. The BOJ is very focused on consumer price inflation. Inflation will determine when its monetary policy will change. This will often blunt the impact of various economic data releases. This was the case this Wednesday.
The data came just before BOJ Governor Kuroda recommitted Japan’s central bank to leaving all monetary policy unchanged until inflation rises and sustains at their two percent target.
