Japanese factory output data for July

-0.8 % m/m ... much worse than expected

  • expected -0.3% m/m, prior 2.2%

4.7% y/y ... ditto

  • expected 5.2% y/y,
  • prior 5.5%

USD/JPY had traded a little higher in the 45 minutes odd leading up to the data release. On the face of it the headline results are weak and argue for continued Bank of Japan policy accommodation (as does the total failure to approach the inflation target, but we knew that already).

USD/JPY now around its overnight high, updates:

More;

The outlooks:

  • For August, factory output seen at +6.0% m/m (vs. previous forecast at +3.6%)
  • September seen at -3.1% m/m