Trade Desk Thoughts - Japan Machine Tool Orders

Japan Machine Tool Orders Actual -14.2%, Previous -8.9%

Release Explanation: It measures the value of new orders with machinery manufacturers. Japan is a manufacturing and exporting giant and therefore these numbers impact the overall view of how that side of the economy is fairing.

Trade Desk Thoughts: Machinery orders declined in Japan, reflecting the domestic slump and the global incertitude. The release shows companies are reducing new equipment investment, something that has a negative effect on the economy. The Japanese industry is highly depended on its engineering appliance orders, so this report can be used as an early indicator to a slowdown

Forex Technical Reaction: The Usd/Yen had little response to the news release. The pair has moved down during the Asian session, declining 50 pips to TheLFB S1.

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