- Japanese Industrial Production (Prelim) m/m: -3.4% vs. -1.5% forecast, 3.7% previous
- Japanese Industrial Production (Prelim) y/y: -2.6% vs. -0.6% forecast, -2.78% previous
Japan released disappointing industrial production data, but it wasn’t enough to get forex traders going in a mostly sleepy start to the new week. It’s another data point in a mixed string of data points from the Land of the Rising Sun, this time a disappointing one thanks to declines in cars, electronics and machinery and probably affected by the Lunar New year season. The Japanese yen seems to have gained support on this news, possibly as a “risk-off” reaction to the latest signs that what the BOJ, gaining only slightly on the session against most the majors:
EUR/JPY is down 12 pips (-0.10%) to 129.53, AUD/JPY is down 23 pips (-0.28%) to 92.00, and NZD/JPY is down 17 pips (-0.22%) to 89.85
To hopefully change up the pace, the forex calendar shows a slew of economic data coming to the London trading session from all the European majors, and covering various measurements of economic health.
It starts off with the KOF leading indicator at 7:00 am GMT, with the broad measurement of potential short-term economic development in Switzerland showing a tick higher to 90.3 vs. 90.1 previous. We’ll then get various U.K. housing sector and money supply data points at 8:30 am GMT, with the most notable metrics being the net consumer credit data (£0.9B forecast vs. £0.8B previous) and mortgage approvals data (61.5K forecast vs. 60.8K previous).
At 9:00 pm GMT, we’ll get various sentiment data from the euro zone forecasted to come in above previous reads, and just ahead of the U.S. trading session, we’ll get German inflation readings at 12:30 pm GMT. Both the consumer price index data and harmonized index of consumer prices data are forecasted to improve on the yearly change but tick lower on the monthly change, so it could be a volatile but choppy reaction in the euro during its release!
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