Trade Desk Thoughts - Japanese Capital Spending

Japanese Capital Spending Actual -6.5%, Expected 1.2%, Previous -4.9%

Release Explanation: Capital spending measures the total amount of new capital expenditures by private businesses. A rising trend has a positive effect on the nation's currency because high levels of business investment are a sign of a strong economy while lower readings are a sign that a nations may be contracting.

Trade Desk Thoughts: Capital spending was down 6.5 percent for the quarter in Japan, marking the fifth consecutive quarterly decline. Data released showed that corporate profits eased 5.2 percent on the year while sales fell 0.7 percent.

Forex Technical Reaction: The Japanese yen was largely unaffected after the negative reading on capital spending for the quarter.

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