A Sluggish Economy Keeps the Yen Lower

Sluggish economic news is keeping the yen lower in Forex trading on the currency market. With economic news indicating a slow recovery, there is no reason to expect policymakers to quit easing anytime soon, and that could mean more weakness in the yen.

The latest flash machine tools orders showed a decline of 23.1 per cent year over year in October, and there are other signs that the economy is moving slowly. Even though machinery orders rose more than expected, there is plenty of other data that signals that the Japanese economy is far from recovery.
As a result, many do not expect to see an end to recent stimulus efforts from the Bank of Japan. Policymakers have been working to keep the yen weak for years, hoping to curb the flagging economy and help boost matters. However, the efforts have largely been insufficient.
Yen is lower against most of its major counterparts today as Forex traders expect things to stay their course and as concerns about what’s next for the economy continue to drive policy.
At 15:18 GMT USD/JPY is up to 122.9070 from the open at 122.8500. EUR/JPY is also higher, moving up to 132.1800 from the open at 131.9780. GBP/JPY is gaining to 187.0000 from the open at 186.9280.

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