Forex News Japan – Series of soft data boosts the Dollar

Important: This page is part of archived content and may be outdated.

Earlier today we had announcement of various Japanese economic data. The core CPI which excludes, goods that may impose to the reading seasonal correlation rose by 0.4%, below the expectation of 0.5% and less than the previous reading (May) of 0.6%. Household Spending in Japan for June declined sharply (-4.2%) as the forecast was for a slump of 2.2%, the previous rate showed a decline of 1.9%. Furthermore an Industrial Production Index, which presents the activity in the country’s backbone sector, fell below the expectations; the month over month index came out at the depressing rate of 3.9% at the same time the poll was giving a 4.5% rate. The year over year Index declined by 1.6%, while the forecast was for a drop of 1.2%. The unemployment in Japan rose by 0.1% as it was expected to a rate of 4.6%. The accumulation of negative news has bolstered the USDJPY pair, which since the time of the announcement of the news gained some 12 pips to climb to 77.85. However, now the pair is trading at 77.80, as the US Dollar seems to be poisoned by the ongoing debt issues in the world’s largest economy.