Japanese Core Machinery Orders for April dropped -2.9% m/m first m/m, the first m/m fall in 3 months. However, they didn't fall as much as expected:
- Japan Core Machinery Orders (April) -2.9% m/m (vs. expected -3.1%)
The 'not as bad as we expected' has Japan's Cabinet Office breaking out the high fives, upgrading their assessment: news wires amend this to say that while a pick up is seen, the assessment remains unchanged.
- saying they are seeing pick up moves
OK, I need to put my stick in the mud attitude aside. If the Cabinet Office are encouraged then that must be good news for the Japanese economy. At this stage I doubt there are any significant implications for the Bank of Japan, but perhaps it'll boost market perceptions of a cut back in JGB purchases to come in July:
- will formulate a detailed plan to reduce bond buying in July
USD/JPY is circa 157.30, down from highs above 157.60 earlier in morning trade.
