On Wednesday morning, USDJPY is trying to recover after falling for three consecutive trading sessions.
The Japanese Yen stopped rising against the USD on Wednesday morning. The current quote for the instrument is 111.18.
In the morning, Japan reported on the Core Machinery Orders in February. The indicator expanded by 1.8% m/m after losing 5.4% m/m in the previous month and against the expected reading of +3.0% m/m. As can be seen, the domestic demand remains rather cautious due to uncertainty in trade relations in the Asian region in the future.
One more report, the Bank Lending in March, was +2.4% y/y, which is a bit better that the January reading (+2.3% y/y). Improvement of the indicator is a good signal, but so far, it’s been rather unstable.
The Producer Price Index in March expanded by 1.3% y/y, which is better than both previous and expected readings of +0.9% y/y and +1.0% y/y respectively. As a result, one may expect improvements in the inflation and the retail sector. In fact, the higher the PPI, the more chances the CPI may get higher as well. For the Bank of Japan, it’s a good sign.