Wednesday April 2, 2014 - 10:54:31 GMT
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Japanese Economy Looking Forward with Inflation Getting Traction
Forex trading is appealing to investors for many reasons. However, the foreign market is massive, complex and brutally competitive. Forex trading is dominated by major banks, trading companies and funds. In addition, these powerful entities integrate all new data into the marketís prices. The foreign exchange is a tricky place to make money, and those who are not experienced should practice their trading techniques in smaller markets. Seven currencies account for approximately 80 percent of the forex market including Japan. The recent information regarding Japanís economy was mainly positive. However, the numbers may not be strong enough to counteract next month's sales tax increase. Japanese Prime Minister Shinzo Abe has pledged to end the countryís many years of deflation while reaching an inflation target of 2 percent. Prime Minister Abe is using quantitative and qualitative easing processes to achieve his economic goals for the country. Economic experts have nicknamed the plan Abenomics.
Japanís consumers are taking action and improving the countryís economy due to the upcoming tax implementation of Abenomics. Specifically, Japanís economic data shows that retail transactions and inflation are growing slowly. In addition, the countryís unemployment percentage is decreasing. The yen did increase slightly with the data release, but the numbers ended where financial experts predicted, so they do not expect the information to change the value of the yen anytime soon.
Financial experts are predicting a continued economic increase as people will likely make large ticket purchases prior to the sales tax boost. Japanís core inflation held its own while the core-core inflation increased marginally by 0.8 percent. The core-core inflation is Japanís most significant number since it removes the influence of the yen on the countryís trade sector, which includes energy and food. Financial analysts state that the statistics strengthens their confidence that the economy is going the right way, but itís moving more slowly than Tokyo would prefer. A recent report regarding the countryís industrial production may cause a delay in its economic recovery. In February, the industrial production came in at 6.9 percent. A year ago, it was at 10.3 percent. Financial experts predicted that the production number would be around 9.9 percent, but the numbers came up short. Japanís inflation value met estimates in February in advance of the countryís sales tax hike. The Japanese yen is the third most frequently traded currency in the world. In fact, it only follows the euro and the United States dollar. The nation features an unusual economy as it manufactures and exports a large amount of automobiles and electronic products. Today, Japanís economy is looking forward since the countryís inflation is gaining traction.
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