The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Japan core machinery orders recover in January
In January, Japan's core machinery orders managed to rebound from an abrupt dive in December, thus confounding hopes. That’s an indication that capital spending is going to keep contributing to economic surge.
The 8.2% jump in core orders, an extremely volatile data series considered to be a gauge of capital spending in six to nine months, surpassed the 5.6% leap anticipated by market experts.
In December, core orders went down an updated 9.3%, which is the fastest dive for more than three years. On Wednesday, the Cabinet Office told that core machinery orders were reviving.
The Japanese economy managed to expand more than initially anticipated for the last quarter of the previous year, due to an upward update of capital expenditure as well as inventory data, which confirms the longest run of surge for 28 years.
Soaring machinery orders hint that Japan's recent surge spurt will probably continue, although uncertainty as for the policy outlook due to revelations of a cover-up of suspected cronyism affects confidence in the prime minister.
In January, orders from manufacturers inched up 9.9%, rebounding from an 8.5% dip in December.
In January, non-manufacturers' orders went up 4.4%, also reviving from a 5.3% dive in December.
From 2017 core orders, excluding those electric power utilities and ships, climbed up 2.9%, which is more than the median forecast for a 0.6% annual jump.
Some opposition representatives are calling on Finance Minister Taro Aso as well as Prime Minister Shinzo Abe to resign right after Aso told that finance ministry staff members changed documents having to do with the sale of government land.
Others point out that a person with a relationship with the prime minister's spouse utilized this tie for the purpose of purchasing the land on the cheap. However, Abe has often denied that he or his spouse was actually involved.
Happy Monday, dear traders! Hope you had a great weekend and you’re ready for the last trading week in 2022! Later this week we’ll announce some exciting news for you, but now let’s look through some interesting news! Today’s events: USA, UK, Hong…
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…