Japan April industrial production expected to hit a 6 year high

From Japan today we"ll get Industrial Production for April (preliminary reading)

• Due at 2350GMT, data release by the trade ministry


• Expected +4.2% m/m, prior -1.9%


• Expected +6.1% y/y, prior +3.5%

This data has fluctuated recently, but net has been on the improve. If today"s "expected" is hit it"ll confirm factory output is rising at its quickest in around 6 years. Japan Inc. is getting a boost from rising exports, which is good not just for Japan but insofar as it shows global demand recovering its good news for economies generally.

IP is also benefitting from:

• Inventory adjustment effects diminishing


• A pickup in auto production (car sales recovering)


• Global demand for Japanese electronic components

What does it mean for the yen? As with most Japanese data I expect the response will be a swift ... nothing! :-D

In general, though, you"d expect better economic data like this to be yen supportive (at least in so far as it reduces pressure on the BOJ to ease MOAR, and thus be a yen negative). Having said this though, if the Bank of Japan"s goal is to hit its 2% inflation target (they are WAY off, core inflation (ex-food and energy) is nestled around zero percent) then there is unlikely to be much of a move from the Bank away from aggressive monetary policy accommodation.

Japan April industrial production expected to hit a 6 year high
Japan April industrial production expected to hit a 6 year high
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