Japan - Retail sales for September

+0.7% m/m,

  • expected 1.1%
  • prior was 1.8%

-0.2% y/y,

  • expected 0.4%
  • prior was 0.8%

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A disappointing pair of numbers from Japan for retail sales m/m and y/y.

Both under expectations and the previous result. More evidence of a very weak economic recovery in Japan... to the extent that after last quarter's negative GDP another period of contraction may be in store and confirmation of another recession. Especially disappointing ahead of the Bank of Japan monetary policy meeting coming up on Friday.

But ... I'm getting ahead of myself. Ahead of Friday's BOJ meeting we are yet to get industrial production (preliminary) on Thursday (Japan time), household spending and CPI on Friday (Japan time).

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There has been little response from the yen ... its weakened (i.e. USD/JPY up) a pip or so ....

If the data flow continues like this from Japan speculation of further action from the BOJ will increase.