Japan Core Machinery Orders (February): 2.1% m/m (expected -2.5%)

Japan – Core
Machinery Orders for February were expected to pull back after the big gain in January … but not so, another gain this month

2.1 % m/m

• expected -2.5% m/m,
  prior +8.2%

2.4 % y/y

• expected 0.0% y/y,
  prior +2.9%

While Japanese data does not generally tend to have too big an immediate impact on the yen FX rates the argument goes that the growing economy in Japan, further evidence provided by this beat today, is a yen supportive factor as it argues a BOJ ‘exit’ will come … having said this inflation data is still way short of target so any exit is not imminent. not at all.