We had some inflation and jobs data from Japan already this morning (its a holiday nearly everywhere in forexland, but not in Japan):
- More Japan data - jobs report for February: Unemployment 2.5% (expected 2.6%)
- Japan inflation data (for Tokyo, Mar. CPI): Headline 1.0% y/y (expected 1.3%)
Now, the IP data, of all the data this morning probably the most watched.
Industrial Production m/m for February (preliminary reading) +4.1% m/m
- expected 5.0%, prior was -6.8%
Industrial Production +1.4% y/y for (February reliminary)
- expected 2.3%, prior was 2.5%
The question was will there be a bounce from January's slump on the month? The outlook published by METI (Japanese manufacturers see February output +9.0% m/m) said yes, and the data today is in that direction indeed. It has undershot that outlook, which is not unusual, but the background to the IP data was a softening in earlier indicators for February:
- The manufacturing PMI output index was 53.4, down 1.3 points on January
- Current conditions DI for manufacturers in the Economy Watchers Survey was down 2.9 points from January
- Exports were up but on slowing momentum
More (the outlooks):
- March seen at +0.9% m/m
- April's at +5.2%
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If you are trading away - there is still some info to come from Japan
- BOJ Japanese Government Bond buying operation scheduled in the 1-3, 3-5, 5-10 years still left until maturity
- That's at 0110GMT
I won't be around - I'm off for the rest of the looooong weekend! Have a great time everyone!