16 Jan 2014
Flash: Domestic demand for Japan - BBH
FXstreet.com (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman commented on the BoJ's upgraded economic assessment.
Key Quotes:
"The BOJ upgraded its economic assessment for five of the main regions, largely due to domestic demand. Core machine tools orders jumped 9.3% in November. The market had looked for a 1.2% gain. This is seen as a proxy of capital expenditures."
"Separately, the corporate goods price index rose 0.3% in December for a 2.5% y/y rise, a tad slower than November. Still, it has been up for nine consecutive months, boosting confidence that the deflation dragon has been slayed. Simply put, Japan is no longer the low inflation country amongst the G10."
Key Quotes:
"The BOJ upgraded its economic assessment for five of the main regions, largely due to domestic demand. Core machine tools orders jumped 9.3% in November. The market had looked for a 1.2% gain. This is seen as a proxy of capital expenditures."
"Separately, the corporate goods price index rose 0.3% in December for a 2.5% y/y rise, a tad slower than November. Still, it has been up for nine consecutive months, boosting confidence that the deflation dragon has been slayed. Simply put, Japan is no longer the low inflation country amongst the G10."