The Yen is slowly growing. Overview for 13.03.2017

The USD/JPY pair is slowly falling as the market is feeling nervous before the March meeting of the FOMC.

On Monday, the Japanese Yen is trading rather calmly against the USD. The current quote for the instrument is 114.66.

The market’s undivided attention is focused on the March meeting of the Federal Open Market Committee in the USA, which is planned to start on Tuesday, March 14^th, and last for two days. The market is almost 100% sure that the interest rate will be increased. This. In its turn, will support the USD immediately and put pressure upon other currencies.

The statistics published by Japan in the morning was rather mixed. The Core Machinery Orders in January lost 3.2% m/m after adding 6.7% m/m the month before (expectations were zero). In general, today’s number looks like a correction towards the December reading, and it’s normal.

However, on YoY, the Machinery Orders dropped by 8.2%, which is much worse than expected and the December reading. Usually, such significant downfall of the indicator shows that the business sentiments are getting worse.

The PPI in Japan in February expanded by 1.0% y/y, matching expectations, after adding 0.5% in the previous month. The Tertiary Industry Activity didn’t in January after losing 0.3% m/m in December and against expectations of adding 0.2% m/m.

RoboForex Analytical Department