Forex Marketz Daily Forex News – Fully Markets Update
The Japanese yen traded quietly, despite an upbeat machine orders data release out of Japan. The USD/JPY traded quietly near high price points even though the data widely beat forecasts.
Machine orders, for the month of July, surged by eight percent, according to official Japanese government figures. This is almost doubled the expected 4.1 percent gain. Annually, orders fell by 7.5 percent. This is a bit better than the 7.8 percent contraction that was forecasted. This data series, which is often volatile, is used by investors to estimate Japan’s capital expenditures levels. This is forward looking as it is between six and nine months from the data of release.
The Yen ignores today’s economic Data
After today’s data release, the USD/JPY Forex market barely moved. The Dollar is weak across the board, especially in the region, and has been weak for much of the year. There is a lot of geopolitical tension in play. With North Korea’s latest thermonuclear test and their constant threats, the latest to bring “pain and suffering” upon the United States, should the US go forward with more sanctions against the rogue nation in the United Nations, the Dollar has lost capital as money has flowed into the safe haven yen.
Investors also doubt whether or not US President Donald Trump will even accomplish his proposed fiscal plans or tax reforms at home.
With this said, even when the US Dollar is not under pressure from Japanese data, this Forex market tends to ignore and trade as it was. This data also has little if no chance of altering the Bank of Japan’s monetary policy. According to Bank of Japan, the current, ultra-loose monetary policy will remain in place until consumer price inflation nears its target of two percent and remains there. Currently the core inflation is at 0.4 percent.
