Important Economic Indicators for the JPY

Important Economic Indicators for the JPY

Gross Domestic Product – This measures the economic activity of Japan. It indicates whether the economy is red hot like lava from Mt. Fuji, or if it’s in the process of harakiri.
Tankan Surveys – These reports survey managers from a broad range of industries, questioning them on their views of the economy. The rising sentiment (scores above 0.0) indicates that Japanese businessmen expect business activity to pick up. Scores below 0.0 suggest otherwise.
Trade Balance – The Japanese economy is heavily export-dependent. Falling export numbers could lead to a decline in economic activity.
Unemployment Rate – This measures the rate of unemployment in Japan. High unemployment could lead to a decline in consumer spending – how would they be able to afford their video games and anime??
Consumer Price Index (CPI) – In the past, the Bank of Japan has shown that they are not afraid to make moves to fight off deflation. If trends show that prices of samurai swords and shurikens continue to fall, it may lead to some surprise moves by the BOJ.
Core Machinery Orders – A large chunk of Japan’s exports are comprised of machinery orders. The rise or fall in core machinery orders could reflect the current status of Japanese trade.

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