Buz Investors Japanese Yen Inches Back Japanese producer prices matched expectations in February •They were higher compared to the previous month but still pretty weak •The Yen slipped, but feeble machine-order data were probably more to blame The Japanese Yen weakened slightly against the US Dollar on Monday, despite the release of wholesale price data which matched expectations. The official Japanese Corporate Goods Price Index (CGPI) rose 0.2% on the month in February, exactly as expected but below January’s 0.6% gain. Compared to February, 2016, however, factory gate prices were up 1%. This was as expected but much stronger than the previous month’s 0.5% rise
The Japanese currency started to weaken about ten minutes before the release and continued to do so after it. USD/JPY climbed to 114.88 from 114.66. Of course, these gains were marginal. The markets are fixated on Wednesday’s monetary policy decision from the US Federal Reserve which is widely expected to produce an interest rate rise following last week’s strong employment data. But market heroics may be scant before we see the Fed’s hand.
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