Trade Desk Thoughts - Machine Tool Orders

Machine Tool Orders Actual -20.7%, Previous 13.9% (revised from -14.2%)

Release Explanation: Japan is a manufacturing and exporting giant and therefore these numbers impact the overall view of how that side of the economy is fairing. This is the value of new orders placed and can reflect an expansion or contraction of a very important part of the economic infrastructure.

Trade Desk Thoughts: Orders for machine tools have declined in Japan, reflecting the global slowdown as well as the domestic slump that recent reports have alluded to. New orders fell 20.7% from last year as companies reduced investments in new technology in the face of economic uncertainty. The Japanese industry is highly dependent on its engineering appliance orders, so this report can be used as an early indicator for a slowdown.

Forex Technical Reaction: The Usd/Yen did not response to the news release. The pair has traded in higher during the overnight session, gaining 150 pips so far

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