Japanese Yen (JPY)
The growth rate of machinery orders in December increased, but concerns about the Japanese economy continue. The trade deficit has widened, while the contraction in the manufacturing sector in February has further weakened the outlook. Looking ahead, the release of January’s headline and core Consumer Price Index (CPI) rates on Tuesday may show an easing in inflationary pressures, which could weaken the JPY. The BoJ is expected to raise interest rates for the first time in decades in April, with further hikes expected later in the year. However, this doesn’t seem to be supporting the JPY currently. Apart from Tuesday’s CPI rates for January, we note the release of the preliminary industrial output for January due out on Thursday.