Japan's Nikkei Manufacturing PMI improves in December to 52.6

Joshua Gibson FXStreet

Japan's Nikkei Manufacturing PMI for December ticked higher to 52.6, compared to the previous reading of 52.4. Median market forecasts were expecting the indicator to remains stuck at 52.4, but the unexpected increase sees support for an improved GDP reading for 2018's final quarter.

Key highlights (via IHS Markit)

The Japanese manufacturing sector finished 2018 on a solid footing, with business conditions improving at a stronger rate. Driving the firmer upturn was a sharper expansion in production, which rose at the strongest rate since last April. New orders also increased at a faster pace, but overall remained relatively muted, while export sales declined on the month.

Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said:

“The final print of the December Manufacturing PMI showed that Japan’s goods-producing economy looks set to contribute to a bounce-back in GDP growth for Q4. Output increased at the strongest rate since April last year, while new order growth also improved. Nonetheless, the survey data provide reason to remain cautious on growth prospects. Most notably, demand pressures were relatively subdued." - Joe Hayes, IHS Markit

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.