Japan’s industrial production likely dropped sequentially in January

Japan’s industrial production is likely to have dropped slightly in January. According to a DBS Bank research report, Japanese industrial production is expected to have fallen 3.5 percent sequentially. This is unlikely to be a major concern because it comes following a strong 2.7 percent rise in December.

The Nikkei manufacturing PMI came in well in January and February at 54.8 and 54, respectively, in spite of the Lunar New Year. The cyclical rebound in Japan’s manufacturing sector continues to be on track.

“Having said that, given the high-base effect and lingering supply-side constraints, it would prove difficult for the economy to repeat last year’s strong growth”, added DBS Bank.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was slightly bullish at 68.3155, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -37.1507. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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