Japan’s June Industrial Output Sees Sharpest Fall in 18 Months

Ahead of the Bank of Japan’s policy meeting, Japan’s factory output for June has come in as a major disappointment, marking the steepest decline in 18 months. According to data released by the government, Japan’s industrial output fell -3.6% in June after a +2% growth in May, while expectations were for a 2% decline.

The US-China trade war has had a significant impact on Japan’s industrial sector as China is one of its key markets. According to the manufacturers surveyed by the government, industrial output is expected to climb 2.7% higher in July as a result of strong domestic demand.

On a more positive note, Japan’s industrial output has picked up to +0.5% in Q2 2019 after having dropped by -2.5% in Q1 2019. Global trade tensions are weighing heavily on the Japanese economy as in several parts of the world where manufacturing has slowed down or even gone into contraction.

So far, USD/JPY is showing slight signs of bullishness, possibly over a weakening in the Japanese yen over the release of this news. At the time of writing, this forex pair is trading at around 108.75

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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