Yen Improves As Capital Spending Data Trounces Analysts’ Expectations

By Eric Andersen,

THE TAKEAWAY : Japanese Capital Spending Jumps to 7.6 percent from -9.8 percent > Increase Outperforms the Market’s Expectation > USDJPY currency pair drops

Japanese fourth quarter capital spending rose 7.6 percent following a 9.8 percent decline the previous month, besting expectations of a 6.5 percent decline. The positive figure indicates a potential unexpected rebound in growth as corporations in Japan invest more in their businesses.

Analysts did not expect an increase in capital spending this month, and this reflects the series’ biggest increase since March 2007. As traders balanced their portfolios in response to the unforeseen change in capital expenditures, the USDJPY fell, hitting troughs as low as 81.130.
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/01/Yen_Improves_as_Capital_Spending_Data_Trounces_Analysts_Expectations.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.