Forex Marketz Daily Forex News – Fully Markets Update
Some points to consider in this Forex market:
- Following the release of data, both the USD/JPY and the Nikkei 225 were little moved.
- Industrial production grew at 0.2 percent. Expected was 1.8 percent.
- The Bank of Japan will debate more stimulus.
The USD/JPY Forex market held steady after tepid, and poor, Japanese data crossed the wires earlier this morning. Japan’s industrial production (monthly) contracted -0.5 percent as opposed to the forecasted gain of one percent. To compound to the overly sour mood of Japan’s economy retail sales also missed the mark. For the same time period, retail sales were unchanged, as analysts expected them to grow at 0.5 percent.
The USD/JPY barely reacted because this data will have no further impact on the Bank of Japan’s (BOJ) debate on further stimulus. Falling inflation numbers, seen last week, despite the current quantitative easing program (QE) as well as the promise for more from last month’ speech, caused investors to shrug this data off. We also saw a new injection of QE in October 2014. Investors are keeping their eyes peeled and ears open to any new signs of further QE from the central bank. In the bank’s latest policy board meeting, they maintained their objective and were open to increase QE and the monetary base if needed. Right now they are current injecting ¥80 trillion annually.